India's January retail inflation at 2.75% in first print under new data series

SelfRugger · 2026-03-05T13:36:02+00:00

India's retail inflation rose to 2.75% in January, driven by higher food and precious metal prices, marking its return to the central bank's target range. The inflation rate was higher than the expected 2.4%, with a new data series reflecting changes in component weightings.

SelfRugger

2026-03-05 13:36:02

Abstract generation in progress

India’s January retail inflation at 2.75% in first print under new data series

Customers buy fruits and vegetables at an open air evening market in Ahmedabad, India, August 21, 2023. REUTERS/Amit Dave · Reuters

Reuters

Thu, 12 February 2026 at 8:06 pm GMT+9 1 min read

Feb 12 (Reuters) - India’s key inflation rate accelerated to 2.75% in ‌January on higher food ‌and precious metal prices, the maiden print under a revised data series showed on Thursday, returning to the central bank’s target band for the ‌first time since ⁠August.

A Reuters poll had projected retail inflation at 2.4%.

The ⁠new data series lowers the weighting of key components such as food, while moving the base year to ‌2024 from 2012.

COMMENTARY:

MADHAVI ARORA, CHIEF ECONOMIST, EMKAY GLOBAL FINANCIAL SERVICES, MUMBAI

“We do not expect the new inflation series to materially influence policy ‌in the near term. An extended rate pause looks likely, underpinned by a ‌cyclical upturn in both growth and inflation and improving confidence following the conclusion of the U.S.–India trade negotiations.”

(Reporting ‌by Meenakshi Maidas in Bengaluru; Compiled by Abinaya Vijayaraghavan, Editing by Eileen Soreng)

Terms and Privacy Policy

Privacy dashboard

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.