India’s December 2025 Inflation Rises Slightly, Nominal GDP Growth Strong — RBI Still Poised to Support Economy

India’s retail inflation climbed modestly in December 2025, registering a year‑on‑year rise to **1.33%** from **0.71%** in November, marking the fastest pace in three months. Despite the increase, inflation remained **well below the Reserve Bank of India’s (RBI) target range of 2–6%**, reflecting continued subdued price pressures in the economy. Food price declines moderated, and core inflation (excluding food and energy) ticked up, but overall pricing trends suggest demand remains soft even as agricultural and seasonal factors influence costs. At the same time, India’s economic growth outlook remains robust, with government and statistics office estimates projecting strong real GDP expansion of about 7.4% for FY2025‑26 alongside nominal GDP growth near 8% — a sign of healthy economic momentum despite global headwinds. The RBI’s monetary policy framework has more room for accommodation given the low inflation backdrop, and policymakers may consider further interest rate adjustments or liquidity support in early 2026 to sustain growth. Analysts are divided on whether the next repo rate move in February will be a cut or a wait‑and‑see pause, depending on how inflation and external conditions evolve. #IndiaEconomy #Inflation #GDPGrowth #RBIOutlook #SlimScan #GrowthStocks #CANSLIM