India's Headline Inflation Hits 1.33% in December 2025 as Gold and Silver Prices Surge
SDG 8: Decent Work and Economic Growth | SDG 17: Partnerships for the Goals
Ministry of Statistics and Programme Implementation MoSPI | National Statistics Office NSO
The Ministry of Statistics and Programme Implementation has released the Consumer Price Index (CPI) data for December 2025, revealing a headline inflation rate of 1.33%. This represents a significant 62 basis point increase from the 0.71% recorded in November 2025. While the Consumer Food Price Index (CFPI) remained in negative territory at -2.71% , it saw a sharp 120 basis point jump compared to the previous month.
The uptick in price levels was primarily driven by the Personal care and effects category, which was impacted by extraordinary spikes in Gold (68.66%) and Silver (97.07%). Regional data shows that Urban inflation at 2.03% continues to outpace Rural inflation, which stood at 0.76%. Substantial deflation in kitchen staples like Potatoes (-34.90%) and Onions (-48.04%) helped offset the surge in non-food items. Notably, this is the final release under the Base 2012=100 series.
What is the significance of the ‘Base 2012=100’ series in CPI? The Base 2012=100 series refers to the benchmark year used to calculate price changes, where 2012 acts as the reference point with a value of 100. It involves a fixed “basket” of goods and services that represent the consumption habits of the Indian population at that time. As this is the final release under this old base , the transition to a Base 2024=100 series starting February 2026 is critical to ensure that inflation data reflects modern spending patterns, such as digital services and updated dietary preferences.
Policy Relevance
The rise in headline inflation despite deep food deflation indicates that external commodity volatility, particularly in precious metals, is currently a dominant driver of the domestic price index.
Statistical Modernization: The shift to the Base 2024=100 series on February 12, 2026, will provide a more accurate and contemporary tool for inflation targeting.
Regional Disparity Management: Kerala reported the highest inflation among major states at 9.49% , suggesting localized supply-side pressures that differ from the national trend.
Core Inflation Resilience: Stable inflation rates in Education (3.32%) and Health (3.43%) indicate that core service sectors are not yet experiencing the volatility seen in commodities.
External Sector Vulnerability: The heavy weighting and extreme inflation in Gold and Silver highlight how international market fluctuations directly influence India’s General Index.
Follow the full update here: CONSUMER PRICE INDEX NUMBERS ON BASE 2012=100 FOR RURAL, URBAN AND COMBINED FOR THE MONTH OF DECEMBER, 2025