India’s consumer price-based inflation (CPI) stood at 2.75% year-on-year in January 2026, slightly above the Reuters poll estimate of 2.4%. Food inflation was reported at 2.13% Y/Y, reflecting moderate price pressures. The data suggests stable inflation trends, supported by government measures and trade policies, with implications for monetary policy outlook.
The Government of India has released January 2026 inflation data, showing consumer price-based inflation (CPI) at 2.75% Y/Y, compared to market expectations of 2.4% from a Reuters poll. Food inflation was recorded at 2.13% Y/Y, indicating relatively contained price pressures in essential commodities.
The figures highlight a stable inflationary environment, with tariffs and import quotas contributing to improved market sentiment in recent months. Analysts suggest that the moderation in food prices and controlled headline inflation could provide the Reserve Bank of India (RBI) with flexibility in its monetary policy stance, balancing growth and inflation management.
Key Highlights
-
Headline CPI: 2.75% Y/Y in January 2026 (Reuters poll estimate: 2.4%).
-
Food Inflation: 2.13% Y/Y, reflecting moderate price pressures.
-
Market Sentiment: Improved outlook due to tariffs and import quotas.
-
Policy Implications: Stable inflation may support RBI’s balanced monetary approach.
-
Economic Context: Inflation trends align with government’s efforts to stabilize prices.
Sources: Reuters, Government of India release, Business Standard