India CPI Inflation Update — January Headline at 2.75%

India’s retail Consumer Price Index (CPI) inflation rose to 2.75 % year-on-year in January, according to the first official release under the revised CPI series (base year 2024) by the Ministry of Statistics and Programme Implementation. This marks the first inflation reading using updated weights and reflects everyday consumption patterns more accurately than previous data. Inflation for rural areas stood at 2.73 %, while urban inflation was slightly higher at 2.77 %.

The updated CPI series reduces the weight of volatile food items and adds new categories like online media and rural housing, which can influence how price movements are captured. Despite the headline uptick, inflation remains well within the Reserve Bank of India’s 2 %–6 % tolerance band, signalling continued moderation in price pressures at the start of 2026. Food inflation under the revised index was reported around 2.13 %.

Market Implication: With headline inflation comfortably below the RBI’s target range, pressure on monetary policy easing may be reduced, though the shift to a new CPI methodology will be closely watched by policymakers, financial markets and economists in the coming months.