๐ Good Morning Traders! ๐ง ๐ฅ CPIWatch India Focus โ December 2025
1๏ธโฃ CPI Trends & Current Data
Indiaโs retail inflation (CPI) has been unusually low all through 2025. Some months saw CPI dip below 2%, even hitting record lows unseen since 2012. Octoberโs print was an eye-opener at just 0.25% โ one of the softest readings ever! ๐ง This subdued inflation reflects weak food prices, stable energy costs, and low overall demand pressure โ the key drivers in the CPI basket. ๐โก
2๏ธโฃ Monetary Policy Implications
With inflation so tame, the RBI has room to cut rates โ including a 25 bps repo cut in Dec 2025 โ aiming to boost growth. ๐ Yet, prolonged low inflation could weigh on consumption and investment if wages donโt pick up speed. ๐ธโ ๏ธ
3๏ธโฃ Why CPI Matters Beyond Headlines
CPI isnโt just numbers โ itโs the cost of living & purchasing power barometer. It weighs essentials like food, housing, and transport, directly impacting everyday life. ๐ ๐ฝ๏ธ Markets & policymakers watch it closely to set interest rates, wages, and currency policy. ๐น๐
4๏ธโฃ Structural Changes Ahead
Big updates coming in 2026 โ India plans to revamp CPI calculation and inflation targeting. This could change how inflation is measured and how policy reacts. ๐๐
๐ฅ Takeaway:
Inflationโs unusually low in India through 2025. RBIโs got space for easy policy but must watch for risks if wage growth lags. Structural CPI updates in 2026 could reshape the game. Stay tuned! ๐ฏ
๐ Market Snapshot:
