ew Delhi, Jan. 4 -- India's retail inflation likely edged up in December 2025 to 1.66% from 0.71% in November, driven by an unseasonal rise in food prices and a sharp increase in gold prices, even as overall inflation remained well below last year's levels, according to projections by union Bank of India Research.

The rise in headline Consumer Price Index (CPI) inflation came despite a waning base effect and followed an unusual strengthening in food prices during a winter month, when prices typically soften. Food inflation is estimated to have remained in deflationary territory at -1.19% in December, compared with -2.78% in November, but sequential price increases were recorded across most food segments.

Vegetables, particularly tomatoes,...