India CPI Inflation January 2026 Eases to 2.75% Under New Base Year

KEY TAKEAWAYS:

India’s CPI inflation stood at 2.75% in January 2026 on a year-on-year basis.
Food inflation eased to 2.13% as vegetable and pulse prices declined.
New CPI base year shifted from 2012 to 2024 to improve data accuracy and coverage.

NEW DELHI: India’s India CPI inflation January 2026 declined to 2.75 per cent, according to official data released on Thursday by the Ministry of Statistics and Programme Implementation. The inflation reading is based on the newly revised Consumer Price Index (CPI) series with 2024 as the base year, replacing the earlier 2012 base.

The ministry said the revised index offers a more representative and granular picture of price movements across the economy, helping policymakers, businesses and citizens take more informed, data-driven decisions.

India CPI Inflation January 2026 Reflects Softer Food Prices

Food inflation during January was estimated at 2.13 per cent, aided by a decline in prices of key vegetables such as potatoes, onions and garlic. Prices of pulses including arhar and tur also softened during the month, providing relief to households.

However, the data showed an increase in tomato prices, partially offsetting the broader easing trend in food items. Housing inflation remained moderate at 2.05 per cent, indicating stable rental and housing-related costs.

Sharp Spike in Gold and Silver Jewellery Inflation

While overall inflation remained subdued, the data revealed an extraordinary surge in precious metal prices. Inflation for silver jewellery jumped sharply to 159.67 per cent, while gold jewellery inflation stood at 46.77 per cent during January.

Economists note that the steep rise reflects global price movements and heightened investment demand for precious metals, which could influence household spending and savings behaviour.

CPI Base Year Revised to 2024 for Greater Accuracy

The ministry clarified that CPI figures for December 2025 (1.33 per cent) and November 2025 (0.71 per cent) were calculated using the older 2012 base year and are not directly comparable with the January 2026 data.

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The CPI base has now been revised to 2024 using the Household Consumption Expenditure Survey (HCES) 2023–24. According to the official statement, the revision enhances coverage and representativeness of inflation measurement and introduces more granular consumption data.

Changes in Item Basket and Classification

Under the revised framework aligned with the Classification of Individual Consumption According to Purpose (COICOP) 2018, the CPI structure now includes two Divisions instead of six Groups.

Several outdated items such as VCR/VCD/DVD players, radios, tape recorders, second-hand clothing, audio-video cassettes and coir rope have been removed. New additions include rural housing, online media and streaming services, value-added dairy products, barley and its products, pen drives, external hard disks, attendants, babysitters and exercise equipment.

Officials said these changes reflect evolving consumption patterns and the growing role of digital services and modern lifestyles in India’s economy.

Implications for Policy and Markets

With inflation remaining well below earlier peaks, the latest CPI data provides comfort to policymakers monitoring price stability. Analysts said the revised CPI series will play a critical role in shaping future monetary and fiscal decisions, offering a clearer picture of inflation dynamics in a rapidly changing consumption landscape.