India’s retail inflation eases to 4.8 percent in December, lowest in four months

What happened: India’s retail inflation fell to 4.8 percent in December, marking its lowest point in four months.

• Why it matters now: Softer food prices and steady supply conditions helped cool inflation despite global volatility.

• What changes for people: Consumers may see stable grocery prices, while businesses expect improved demand in Q1.

• Who is affected: Households, FMCG firms, policymakers, and small retailers.

India’s headline retail inflation dropped to 4.8 percent, moving closer to the RBI’s comfort zone and offering relief after months of elevated food costs. Economists say the easing trend strengthens the case for the central bank to maintain its pause on interest rates.

What’s driving the fall

• Vegetable prices cooled sharply

• Fuel inflation remained steady

• Core inflation continued to soften

What to watch next

All eyes are on the upcoming RBI monetary policy meeting, where the inflation trend will influence rate guidance for the next quarter.