Overview
- The first official reading under the revised series showed headline retail inflation at 2.75% in January, with rural at 2.73% and urban at 2.77%, and food inflation at 2.13%.
- Food and beverages now carry a 36.75% weight, down from 45.86% in the old series, while core-oriented categories such as housing, transport, and information services have larger shares.
- The CPI basket has expanded to 358 items, including 50 services, with price collection widened to 1,465 rural and 1,395 urban markets plus 12 online marketplaces.
- Economists say the slightly higher headline under the new methodology supports the Reserve Bank of India’s extended pause after keeping the repo rate at 5.25%, with some projecting inflation to edge toward about 3% in February.
- MoSPI/NSO notes the new series aligns with COICOP standards and is comparable year-on-year from January 2026, with GDP data rebased to updated consumption patterns due on February 27.