India's retail inflation is projected to have risen to 1.66% in December 2025, up from 0.71% in November, according to Union Bank of India research. This increase is primarily attributed to strengthening food prices, particularly for vegetables like tomatoes, due to seasonal demand and supply disruptions from October rains. While food inflation remained negative year-on-year, sequential prices increased. Core inflation, excluding food and fuel, saw a rise to 4.68%, influenced by gold prices, though it remained subdued when excluding gold.