economy

January 12, 2026

India inflation accelerates to 1.33% in December, driven by higher food prices

India's inflation accelerated in December, but still rose less than expected.

India inflation accelerates to 1.33% in December, driven by higher food prices

TL;DR

  • India's consumer inflation rose to 1.33% in December, up from 0.71% in November.
  • The inflation rate was below economists' expectations of 1.5%.
  • Increases in food prices, particularly vegetables, meat, fish, and eggs, contributed to the rise.
  • Fuel and light inflation eased to 1.97% in December.
  • The Reserve Bank of India forecasts consumer inflation at 2% for the fiscal year ending March 2026.
  • Real GDP growth is projected at 7.4% for fiscal year 2026, with nominal GDP growth at 8.0%, a downward revision.
  • A new series of CPI with a 2024 base year will be released starting February 12.

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