India lower comfort – Official data released on Monday (January 12, 2026) showed retail inflation hit a three-month high of 1. 33% in December 2025, still well below the Reserve Bank of India’s lower comfort level of 2%.

Data on Consumer Price Index for December 2025 released by the Ministry of Statistics and Program Implementation shows that the low level of retail inflation is a result of a broad decline in price levels across sectors. RBI has targeted an inflation rate of 4%, with a comfort band of 2% above and below it. For example, the food and beverages category saw a 1.

85% decline in prices in December 2025, which is less than the 2. 8% decline seen in November. This is probably due to high base effect as inflation in this category stood at 7.

7% in December last year. Inflation in the ‘paan, tobacco and intoxicants’ category remained unchanged at 2.

96% in December 2025 compared to November. Inflation in the clothing and footwear category eased marginally to 1. 44% in December 2025 from 1.

49% in the previous month. Inflation in this category was 2. 7% in December 2024.

In the housing sector too, inflation declined slightly to 2. 86% in December 2025 from 2.

95% in the previous month. Inflation in the fuel and light category declined to 1.

97% in December 2025, compared to 2. 3% in November.