FX.co ★ Indian Inflation Rate Rises Less than Expected

In December 2025, India's consumer price inflation rose to 1.33%, up from 0.71% in November, continuing its recovery from the historic low of 0.25% observed in October. This increase, however, was slightly under the market prediction of 1.5%. Despite being the second rise in a row, the inflation rate remained significantly below the Reserve Bank of India's target range of 2% to 6%. The decline in food prices, which constitute nearly half of the Indian consumer price index, moderated (-2.71% compared to -3.91% in November). Conversely, inflation rates decelerated in the sectors of housing (2.86% down from 2.95%) and fuel and light (1.97% from 2.32%). Month over month, the Indian consumer price index saw a slight uptick of 0.05% as the year concluded.