India's Retail Inflation Dips to 1.33% in December, Food Prices Deflationary

• India's consumer price inflation (CPI) dropped to 1.33% in December, below market expectations.
• Falling food prices were the primary driver, with food inflation in deflationary territory at -2.71%.
• Vegetable prices contracted sharply by 18.47%, and pulses by 15.09%, offering household budget relief.
• Month-on-month inflation rose to 0.71%, indicating gradual underlying cost pressure build-up.
• Rural inflation increased to 0.76% and urban inflation climbed to 2.03%, signaling firmer non-food price trends.

Why It Matters: India's retail inflation hit 1.33% in December due to food price deflation, but non-food prices show upward trend.