India's December Inflation Hits 3-Month High, Food Prices Drive Surge

• India's December inflation reached a 3-month high of 1.33 percent, up from 0.71 percent in November.
• This marks the 11th consecutive month inflation remained below RBI's 2-4 percent target.
• Rising food prices, particularly vegetables, cereals, pulses, and edible oils, were the primary drivers.
• Headline inflation increased by 62 basis points in December 2025 compared to November 2025.
• Despite strong harvests, the period of steep food price deflation appears to be ending.

Why It Matters: India's December inflation rose to a 3-month high, primarily due to increasing food prices.