New Delhi, Jan 12 (UNI) India’s retail inflation remained subdued in December 2025, with the Consumer Price Index (CPI) inflation recorded at 1.33 per cent (Provisional), said an official statement released on Monday here.
Food inflation continued to remain in negative territory at –1.47 per cent, marking the seventh consecutive month of food deflation.
Prices of key food items such as cereals (–6.1 per cent) and pulses (–5.3 per cent) declined on a year-on-year basis, helping keep overall inflation low, the Ministry of Statistics and Programme Implementation added.
However, items including vegetables (3.2 per cent), eggs (2.7 per cent), meat and fish (2.1 per cent) and spices (4.4 per cent) registered modest increase during the month.
Inflation in rural areas rose to 0.73 per cent in December from 0.53 per cent in November, while urban inflation increased to 1.96 per cent from 1.28 per cent over the same period.
The rise in rural inflation was driven mainly by higher prices of food and personal care items, while urban inflation was supported by housing and service-related costs.
Housing inflation stood at 2.92 per cent, slightly lower than 2.99 per cent in November, indicating moderation in rental price pressures. Inflation in education was recorded at 4.04 per cent, while health inflation came in at 3.83 per cent, reflecting steady increases in these essential services.
Fuel and light inflation increased to –2.45 per cent from –3.01 per cent in the previous month, indicating easing deflation in energy prices.
Transport and communication inflation remained stable at around 1.1 per cent, while personal care and effects inflation rose to 6.1 per cent, contributing to the mild rise in headline inflation.
Core inflation components showed mixed movement, with household goods and services witnessing moderate price increases, while clothing and footwear inflation remained contained at 2.6 per cent.
The December 2025 data indicate that India continues to experience a prolonged phase of low inflation, supported by favourable food price trends and balanced demand conditions. The sustained moderation in prices has helped preserve household purchasing power and maintain macroeconomic stability.
