India, Jan. 12 -- India's inflation rate accelerated but stayed below the Reserve Bank of India's tolerance band, leaving the door ajar for a repo rate cut next month.

The consumer price index, a measure of retail inflation in the Indian economy, rose 1.33% from a year earlier, according to data released by the Union Ministry of Statistics and Program Implementation on Monday (12 January 2026). That compares with the Bloomberg estimate of 1.56% and 0.71% in November.

"The inflationary trend remains fairly benign, creating room for the last rate cut in the upcoming policy," said Upasna Bhardwaj, chief economist at Kotak Mahindra Bank, said. That decision will be a "very close call" as the government is set to revamp its inflation and GDP...