India inflation accelerates to 1.33% in December, driven by higher food prices

Inflation Overview - India's consumer inflation rose to 1.33% in December, up from 0.71% in the previous month, but below economists' expectations of a 1.5% increase [1] - The increase in inflation was primarily driven by rising prices in personal care, vegetables, meat, fish, eggs, spices, and pulses [2] Sectoral Analysis - Headline inflation increased by 0.76% in the rural sector and 2.03% in urban areas in December, while fuel and light inflation eased to 1.97%, down from 2.32% in November [2] Economic Projections - The Reserve Bank of India revised its consumer inflation forecast to 2% for the fiscal year ending March 2026, down from a previous estimate of 2.6% [3] - The central bank anticipates inflation to rise to 2.9% for the quarter ending March and reach 4.0% for the quarter ending September 2026 [3] - An early estimate projected real GDP growth of 7.4% and nominal GDP growth of 8.0% for fiscal year 2026, significantly lower than the 10.1% nominal GDP growth forecast in the Union Budget [4]