BusinessREPORT NOTE
India’s retail inflation at 1.33% keeps rate-cut expectations alive, report says
India’s CPI inflation rose to 1.33% year-on-year in December 2025, still below the RBI’s tolerance band, leading economists to say there may be room for another repo-rate cut depending on upcoming policy decisions.
What happened
India’s consumer price inflation (CPI) for December 2025 came in at 1.33% year-on-year, according to data cited in the report, remaining below the RBI’s tolerance band.
Why it matters
Benign inflation can give the central bank room to prioritise growth, and market watchers are tracking whether the Reserve Bank of India signals further easing in upcoming monetary policy decisions.
Key takeaways
- CPI inflation: 1.33% (December 2025, year-on-year)
- Inflation remains below RBI’s tolerance band
- Focus turns to the next MPC meeting and guidance