December 2025 CPI inflation: The Consumer Price Index (CPI) inflation for the month of December 2025 rose to 1.33% compared to the same month in 2024. This is a rise of 62 basis points from November 2025, and the figure stands at a 3-month high. RBI has an inflation target of 4% with a 2% scope on both sides. With CPI inflation remaining in the benign territory, RBI has room to continue supporting growth.Food inflation, based on the All India Consumer Food Price Index, remained in the negative territory at minus 2.71% in December 2025 on a year-on-year basis. Rural food inflation was recorded at minus 3.08%, while the urban figure stood at minus 2.09%. Despite remaining negative, food inflation increased by 120 basis points from November 2025. CPI (General) and CFPI trends over the past 13 months highlight this recent uptick.The rise in both headline and food inflation during December 2025 was largely driven by higher price pressures in categories such as personal care and effects, vegetables, meat and fish, eggs, spices, and pulses and related products.In rural areas, both overall and food inflation edged higher in December 2025. Headline inflation rose to 0.76% from 0.10% in November, while food inflation moderated to minus 3.08% from minus 4.05% a month earlier.Urban inflation also firmed up, with the headline rate increasing to 2.03% in December 2025 from 1.40% in November. Food inflation in urban centres rose to minus 2.09%, compared with minus 3.60% in the previous month.Housing inflation, calculated for the urban sector alone, eased slightly to 2.86% year on year in December 2025, down from 2.95% in November.Education inflation, covering both rural and urban areas, was recorded at 3.32% in December 2025 on a year-on-year basis, marginally lower than the 3.38% seen in November.
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