Quote on December 2025 CPI Numbers by Rajeev Sharan, Head – Criteria, Model Development & Research - Brickwork Ratings
Below the Quote on December 2025 CPI Numbers by Rajeev Sharan, Head – Criteria, Model Development & Research - Brickwork Ratings
India’s December 2025 CPI inflation rose to 1.3%, marking an inflection point in the disinflationary cycle. While headline inflation remains subdued, rising core pressures from non?food categories and precious metals highlight emerging demand risks. This divergence enables the RBI to maintain an accommodative stance, though further rate cuts in 2026 are likely capped at around 50 bps, with inflation projected to rebound toward 4% by H2 FY27. From a credit ratings perspective, low inflation supports debt servicing and strengthens sovereign and corporate metrics amid fiscal consolidation, though agencies will closely monitor the impact of core pressures on sector margins.
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