India Inflation December 2021


India: Inflation comes in at highest level since June in December

January 12, 2022

Consumer prices fell 0.36% from the previous month in December, swinging from November's 0.73% rise. December's result marked the weakest reading since January. The reading was driven by falling prices for food and beverages and easing price pressures for clothing and footwear.

Inflation came in at 5.6% in December, up from November’s 4.9%. December's result represented the highest inflation rate since June. Annual average inflation edged up to 5.1% in December (November: 5.0%).

Our panel projects inflation to average 4.8% in FY 2021, which is up 0.1 percentage points from last month’s forecast, and 4.5% in FY 2022.


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India Inflation Chart

India Inflation December 2021

Note: Annual and monthly variation of consumer price index (CPI) in %.
Source: Ministry of Commerce and Industry and FocusEconomics calculations.

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