Retail Inflation Hits 3-Month High in December, Essential Items See Price Hikes

• Retail inflation rose to a three-month high of 1.33% in December, up from 0.71% in November.
• The increase was driven by rising prices of essential kitchen items like vegetables, eggs, and pulses.
• Food inflation, while still negative at -2.71%, increased compared to November's -3.91%.
• Core inflation reached a 28-month high of 4.8% in December, primarily due to precious metals.
• India's CPI data will shift to a new 2024 base year from January, with an updated consumption basket and increased non-food weightage.

Why It Matters: Retail inflation surged to a 3-month high in December, fueled by essential item price increases.