India’s retail inflation stood at 2.75 percent in January 2026, the first reading of the newly introduced Consumer Price Index (CPI) series with base year 2024=100.

According to the Ministry of Statistics and Program Implementation, year-on-year inflation in January was 2.73% in rural areas and 2.77% in urban centers. India’s CPI (headline) index rose to 104.46 in January from 104.10 in December and 104.01 in November, marking three straight months of sequential gains.

According to the previous base series of 2012, inflation had firmed towards the end of last year, rising to 1.33 percent in December from 0.71 percent the previous month.

Food inflation, as measured by the Consumer Food Price Index (CFPI), stood at 2.13% in January, with rural inflation at 1.96% and urban inflation at 2.44%. Housing inflation was recorded at 2.05 percent during the month.

The new CPI series reflects significant structural changes in consumption patterns. According to the Household Consumption Expenditure Survey (HCES) 2023-24, the revised basket expands the number of weighted items to 358 from the previous 299, with goods increasing to 308 and services to 50.

A key change is the reduction in food dominance. The share of food and beverages in the combined index has declined to 36.75 percent under the 2024 series, compared to 42.62 percent in the 2012 structure. Non-food categories now account for more than 60 percent of the basket, indicating a broader tilt toward housing, transportation, health and services. Rural housing has also been included for the first time, with housing, water, electricity, gas and other fuels given a higher weight in the revised structure.

The updated series adopts the 2018 COICOP international classification framework, replacing the previous format of six groups with 12 divisions to allow for more granular and globally comparable data. Price collection has also shifted to computer-assisted personal interviewing (CAPI), along with the use of administrative and online data sources for items such as airline fares and streaming services.

Among items, silver jewelery recorded the highest inflation at 159.67 per cent in January, followed by tomato (64.80 per cent) and coconut-based products. On the other hand, garlic (-53.05 percent), onion (-29.27 percent) and potato (-28.98 percent) experienced a sharp decline.

State-level data showed that Telangana recorded the highest combined inflation at 4.92 percent, followed by Kerala at 3.67 percent and Tamil Nadu at 3.36 percent.

The government said the CPI 2024 series represents a comprehensive strengthening of India’s inflation measurement framework, aligning it more closely with current consumption realities and global best practices.

The next CPI release for February 2026 is scheduled for March 12.