India’s consumer inflation rose to 1.33% in December accelerating from 0.71% in the prior month.
The headline inflation number was below economists’ expectations of a 1.5% increase in the consumer price index, according to a Reuters poll.
The increase in headline inflation and rising food prices was mainly due to “increase in inflation of personal care and effects, vegetables, meat and fish, egg, spices and pulses and products,” India’s Ministry Of Statistics and Programme Implementation said in a release on Monday.
Headline inflation increased 0.76% in the rural sector and 2.03% in urban areas in December. However, fuel and light inflation rate eased at 1.97%, lower than the 2.32% print in November.
The Reserve Bank of India expects consumer inflation to be 2% for the fiscal year ending March 2026, down from a 2.6% forecast made in October. The central bank estimated inflation at 2.9% for the three months to March, rising to 4.0% for the quarter ending September 2026.
