India’s headline CPI increased 0.05% MoM (lowest since March 2025), and annual inflation rose to +1.33% YoY in December 2025 (up from +0.71% YoY in November), reflecting a broad uptick led by food-related categories even as food inflation stayed negative.

• All India food inflation (CFPI) was -2.71% YoY in December (provisional), but this marked a +120 bps increase vs November, showing food deflation easing meaningfully.

• The release attributes the December increase in both headline and food inflation mainly to higher inflation in personal care and effects, vegetables, meat and fish, egg, spices, and pulses/products.

• Rural headline inflation rose to +0.76% YoY (from +0.10% in November), while rural food inflation improved to -3.08% YoY (from -4.05%), pointing to a notable rural inflation pickup.

• Urban headline inflation increased to +2.03% YoY (from +1.40%), while urban food inflation rose to -2.09% YoY (from -3.60%), indicating the acceleration was also evident in urban price trends.

• Housing inflation (urban only) eased to +2.86% YoY (from +2.95%), suggesting slightly softer shelter inflation momentum.

• Education inflation slowed to +3.32% YoY (from +3.38%) and health inflation eased to +3.43% YoY (from +3.60%), indicating modest cooling in these service-related components.

• Transport & communication inflation moderated to +0.76% YoY (from +0.88%), while fuel & light inflation cooled to +1.97% YoY (from +2.32%), reducing some upward pressure outside food.