India’s retail inflation stood at 2.75% in January 2026, marking the first release under the revised Consumer Price Index (CPI) series. With a new base year of 2024, reduced food weightage, and expanded categories like rentals and digital services, the update aims to improve accuracy and global comparability.
India’s retail inflation for January 2026 has been reported at 2.75%, the first print under the newly revised Consumer Price Index (CPI). The updated series shifts the base year from 2012 to 2024, reduces the weight of volatile food items, and incorporates modern consumption categories such as airfares, e-commerce, and OTT subscriptions.
This recalibration is expected to provide policymakers and analysts with a more accurate reflection of household expenditure patterns, aligning India’s inflation measurement with global standards. The Reserve Bank of India (RBI) now has greater clarity in assessing monetary policy, with the relatively low inflation figure offering room to maintain its current stance on interest rates.
Key Highlights
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Inflation Rate: 2.75% in January 2026 under the new CPI series.
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Base Year Update: Shifted from 2012 to 2024 for better relevance.
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Food Weightage: Reduced to 36.8% from nearly 50% earlier.
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Expanded Coverage: Includes rentals for rural housing, airfares, e-commerce, and OTT subscriptions.
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Comparative Data: December 2025 inflation (old series) was 1.33%.
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Policy Implication: Provides RBI flexibility to maintain repo rate stability.
Sources: Hindustan Times, The Hindu BusinessLine, ETBFSI