India’s retail inflation increased to around 1.33% in December

Current Context: India’s retail inflation, measured by the Consumer Price Index (CPI), rose to 1.33% in December 2025, as per the Ministry of Statistics and Programme Implementation (MoSPI) report released on 12 January 2026.

• This marks the fourth consecutive month inflation stayed below the Reserve Bank of India (RBI) lower tolerance limit of 2%.
• The Consumer Food Price Index (CFPI) remained negative at –2.71%, moderating from –3.91% in November 2025.
• Rural CPI inflation climbed to 0.76%, while Urban CPI inflation rose more sharply to 2.03%.
• Core inflation touched a 28‑month high of 4.8%, driven mainly by rising gold and silver prices; excluding precious metals, it was steady at 2.4%.
• State‑wise, Kerala recorded the highest inflation at 9.49%, far above the national average.

Question:

Q.1 India’s retail inflation in December 2025 stood at:
a) 2.03%
b) 1.33%
c) 0.76%
d) 4.80%

Answer: b) The CPI-based retail inflation was 1.33% in December 2025 as released by MoSPI on 12 January 2026.