India’s retail inflation stood at 2.75 per cent in January on an annual basis under the newly released Consumer Price Index (CPI) series, compared with 1.33 per cent under the old series in December last year. The release marks the first major revision of India’s retail inflation series in over a decade, with the base year updated from 2012 to 2024. Despite the increase, inflation remained within the Reserve Bank of India’s tolerance limit.
According to data released by the Ministry of Statistics and Programme Implementation, inflation in rural areas edged up to 2.73 per cent, while in urban regions it rose to 2.77 per cent. The food inflation rate, based on the All India Consumer Food Price Index, recorded inflation of 2.13 per cent, compared with a deflation of 2.7 per cent in December last year. A significant feature of the revised CPI is the reduced weight and influence of food in the index.
According to the ministry, the increase in headline and food inflation in January 2026 was mainly attributed to rising prices in personal care, social protection, education services, clothing and footwear, restaurants and accommodation services, and tobacco.
