Source: TH
Context:
India’s retail inflation (CPI) rose to a three-month high of 1.33% in December 2025, remaining below the lower tolerance level of 2% set by the Reserve Bank of India.
What is Retail Inflation?
Retail inflation measures the rate at which prices of goods and services bought by households rise over time. In India, it is tracked using the Consumer Price Index (CPI).
- What it covers: Food, clothing, housing, fuel & light, transport, education, healthcare, etc.
- Who publishes it: The Ministry of Statistics and Programme Implementation releases CPI data monthly.
- Why it matters: It reflects the cost of living and directly affects household budgets.
- Policy link: The Reserve Bank of India uses CPI-based retail inflation to set monetary policy, targeting 4% with a ±2% tolerance band.
