Published: 12 February 2026MoSPI / DD News / Business Standard / ICISEconomy
India's Retail Inflation Stood at 2.75% in January 2026 Under New CPI Base Year 2024=100
The Ministry of Statistics and Programme Implementation (MoSPI) released India's Consumer Price Index (CPI) data for January 2026 on February 12, 2026, using the revised base year 2024=100 — a significant overhaul from the earlier 2012 base year. Retail inflation stood at 2.75%, with rural inflation at 2.73% and urban inflation at 2.77%.
The new CPI series is anchored in the Household Consumption Expenditure Survey (HCES) 2023-24, which captures contemporary spending patterns. A major structural change is the reduced weight of Food and Beverages in the combined index, declining from 45.86% under the 2012 series to 36.75% under the 2024 series — reflecting India's economic growth and changing consumption patterns.
Newly added items to the CPI basket include OTT subscription services, rural house rent, value-added dairy products, pen drives, babysitting services, and fitness equipment. Consumer Food Price Inflation (CFPI) was recorded at 2.13% (provisional). This lower inflation print provides headroom for the Reserve Bank of India to continue its rate-easing cycle. The release also reported December 2025 final CPI inflation under the old 2012 base at 1.33%.
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According to MoSPI's January 2026 CPI release under the revised 2024 base year, India's all-India year-on-year CPI inflation was:
Explanation · Correct answer AMoSPI's January 2026 release for the revised CPI series, with base year 2024=100, reported all-India year-on-year CPI inflation at 2.75% provisional. Rural inflation was 2.73%, urban inflation was 2.77%, and the food-price inflation figure was different. Hence the all-India headline CPI answer is 2.75%.
Frequently asked questions
What was India's retail inflation under the new CPI base year 2024=100 in January 2026 and when was this data released?
India's retail inflation stood at 2.75% under the new CPI base year 2024=100 in January 2026. MoSPI released this data on February 12, 2026. The 2024 base year replaced the earlier 2012 series.
Why is the CPI base year revision significant and how often is it done?
The CPI base year revision is done approximately every 10 years to better reflect current consumption patterns in India. The shift from the 2012 series to the 2024 series is significant because it updates the basket of goods and their weights to match how Indian households actually spend today, making the inflation measure more accurate and relevant.
How has the weight of Food and Beverages changed in the new CPI 2024 series?
In the new CPI 2024 series, the weight of the Food and Beverages component was reduced from 42.62% (in the 2012 series) to 36.75%. This reduction reflects the diversification of Indian household consumption away from food towards services, manufactured goods, and digital subscriptions.
What new items were added to the CPI basket in the 2024 base year revision?
The 2024 CPI revision added new items reflecting modern lifestyles, including OTT (over-the-top streaming) subscriptions and rural rent. These additions acknowledge the growing share of digital services and housing costs in household budgets, especially in rural India.
What does 2.75% inflation imply for RBI's monetary policy and its inflation target band?
At 2.75%, India's retail inflation is comfortably within RBI's flexible inflation targeting band of 2–6% with a midpoint of 4%. This provides the RBI with room to ease monetary policy — such as reducing the repo rate — without risking inflationary overshooting.
