Daijiworld Media Network – New Delhi

New Delhi, Feb 12: India’s retail inflation stood at 2.75 per cent in FY26 under the newly released Consumer Price Index (CPI) series, according to official data announced on February 12. The update marks the first major revision of the country’s retail inflation series in more than a decade, with the base year shifted to 2024 from 2012.

Under the previous CPI series, inflation had risen to 1.33 per cent in December from 0.71 per cent in November, indicating a firming trend toward the end of last year.

Data under the revised series show that prices have been rising sequentially for three consecutive months. The index climbed to 104.46 in January, compared to 104.10 in December and 104.01 in November.

A significant change in the new CPI framework is the reduced weight assigned to food items. For the first time, food’s share in the index has fallen below 40 per cent, while non-food categories now account for over 60 per cent, up from around 45 per cent earlier. The revision also assigns a higher effective weight to rural consumption, reflecting its growing contribution to overall demand patterns.

Food inflation under the revised series was recorded at 2.13 per cent. However, due to the lower weighting of food in the updated basket, its impact on headline inflation is expected to be relatively muted compared to the earlier series.

The revised CPI series is expected to offer a more contemporary reflection of consumption trends and spending behaviour in the economy.