. NEW DELHI: Retail inflation inched up to a three-month high in Dec, led by narrowing deflation in some food prices and fading favourable base effect, but remained below the Reserve Bank of India’s (RBI) tolerance level for the fourth month in a row.Data released by the National Statistics Office (NSO) on Monday showed retail inflation, as measured by the consumer price index (CPI), rose an annual 1.3%, higher than the 0.7% in Nov and below the 5.2% in Dec 2024.Food inflation contracted 2.7% in Dec and there is an increase of 120 basis points compared to Nov. Rural inflation was at 0.8% while urban was at 2% during Dec.Core inflation, which excludes food and fuel, soared to a 28-month high of 4.8% during the month, up from 4.4% in Nov, led by a sharp spike in gold and silver prices, which surged 69% and 97% year-onyear, respectively. Excluding these metals, core inflation moderated to 2.3% in Dec.The increase in overall inflation and food inflation during Dec was largely attributed to increase in inflation of personal care and effects, vegetables, meat and fish, egg, spices and pulses and products. Personal care and effects, which includes gold and silver, rose 28.1% in Dec.“Looking ahead, headline inflation is expected to edge higher but remain below the RBI’s 4% target for the rest of FY26. For FY26 and FY27, CPI inflation is projected to average around 2.1% and 4% respectively, based on the current CPI basket. The rollout of the new CPI series with a 2024 base year next month will be an important development to watch,” said Rajani Sinha, chief economist at ratings agency CareEdge.“From a monetary policy standpoint, the recent uptick in inflation is unlikely to trouble the RBI. While inflation projections leave room for a further 25 basis points rate cut, we expect the monetary policy committee (MPC) to pause and conserve policy space, opting to ease only if growth conditions deteriorate,” said Sinha.End of ArticleFollow Us On Social MediaVideosCongress MP says India remains “heavily invested emotionally and politically” in Bangladesh”Our Youth Is Creative And Innovative,” PM Modi At Viksit Bharat Dialogue“Deeply Impressed,” CEOs Share Takeaways After Meeting PM Modi | VideoFrom Defence To AI: PM Modi Urges German CEOs To Make India Their Global Manufacturing Base’Real Friends Always…’: Trump’s New Envoy Sergio Gor Pledges To Reset India-US TiesNot Trade Or Defence: Why Four-Year Old Baby Ariha Shah Became Key Topic In Modi–Germany TalksAAP’s Raghav Chadha Turns Blinkit Delivery Agent for a Day Amid Gig Workers’ Row’Will Come to Mumbai, Try Cutting My Legs: Annamalai Hits Back at Raj ThackerayIndia Tests Indigenous Fire And Forget Anti-Tank Missile With Top Attack Strike On Moving TargetsShaksgam Valley Row Deepens As China Rejects India’s Claim And Defends CPEC Infra Project With Pak123PhotostoriesBreathtaking pictures of Nupur Sanon and Stebin Ben’s stylish Hindu wedding5 animals that survive by pretending to be deadHow to make Halwai Style Aloo Sabji at homeFrom mindful portions to intermittent fasting: When Taarak Mehta Ka Ooltah Chashmah’s Munmun Dutta gave a peek into her disciplined diet and daily routineTimothée Chalamet to Jacob Elordi: The Men of the 2026 Golden Globes who delivered a masterclass in modern tailoringThalapathy Vijay’s ‘Jana Nayagan’ delayed: 8 must-watch OTT hits to streamTamil Nadu Assembly Elections 2026: Alliances, numbers and the battle for 234 seats5 jungle survival tips Bear Grylls swears by, and how they apply beyond the wildChef Sanjeev Kapoor shares 5 crunchy snack recipes to enjoy with chai during winter `Best horror dramas on Apple TV: ‘The Enfield Poltergeist’, ‘Servant’ and more123Hot PicksISRO PSLV-C62 missionTrump tariffsGold rate todayBengaluru newsCigarette price hikePublic holidays January 2026Bank Holidays JanuaryTop TrendingNFL Football Playoff Schedule 2026George Kittle InjuryVanessa Bryant and Natalia Bryant Net WorthBrooks Koepka and Jena Sims Net WorthMorgan GeekieBryce Harper Net WorthTravis Kelce WeddingDonovan MitchellLeBron JamesBudget 2026
NEW DELHI: Retail inflation inched up to a three-month high in Dec, led by narrowing deflation in some food prices and fading favourable base effect, but remained below the Reserve Bank of India’s (RBI) tolerance level for the fourth month in a row.Data released by the National Statistics Office (NSO) on Monday showed retail inflation, as measured by the consumer price index (CPI), rose an annual 1.3%, higher than the 0.7% in Nov and below the 5.2% in Dec 2024.Food inflation contracted 2.7% in Dec and there is an increase of 120 basis points compared to Nov. Rural inflation was at 0.8% while urban was at 2% during Dec.
Core inflation, which excludes food and fuel, soared to a 28-month high of 4.8% during the month, up from 4.4% in Nov, led by a sharp spike in gold and silver prices, which surged 69% and 97% year-onyear, respectively. Excluding these metals, core inflation moderated to 2.3% in Dec.The increase in overall inflation and food inflation during Dec was largely attributed to increase in inflation of personal care and effects, vegetables, meat and fish, egg, spices and pulses and products. Personal care and effects, which includes gold and silver, rose 28.1% in Dec.“Looking ahead, headline inflation is expected to edge higher but remain below the RBI’s 4% target for the rest of FY26. For FY26 and FY27, CPI inflation is projected to average around 2.1% and 4% respectively, based on the current CPI basket. The rollout of the new CPI series with a 2024 base year next month will be an important development to watch,” said Rajani Sinha, chief economist at ratings agency CareEdge.“From a monetary policy standpoint, the recent uptick in inflation is unlikely to trouble the RBI. While inflation projections leave room for a further 25 basis points rate cut, we expect the monetary policy committee (MPC) to pause and conserve policy space, opting to ease only if growth conditions deteriorate,” said Sinha.
