India's December Inflation Hits 3-Month High, Still Below Forecasts

• India's CPI inflation reached 1.33% in December, a three-month high, but was lower than the CNBC-TV18 poll estimate of 1.62%.
• Inflation rose month-on-month from 0.71%, indicating sequential pressures.
• Food prices were the main reason for softer inflation, with food inflation at -2.71% in December.
• Vegetable and pulse prices continued to see steep deflation at -18.47% and -15.09% respectively.
• Rural inflation increased to 0.76% and urban inflation to 2.03%, showing firmer price pressures in cities.

Why It Matters: India's December inflation rose to a three-month high but was driven by easing food prices.