India’s retail inflation rate stood at 2.75 per cent in January on a year-on-year basis, according to fresh data released by the Ministry of Statistics and Programme Implementation. The figures are based on a revised Consumer Price Index (CPI) series that now uses 2024 as the base year, replacing the earlier 2012 benchmark.
The shift in base year is aimed at aligning inflation measurement with present-day consumption trends and household spending behaviour. Officials said the updated index reflects more recent lifestyle patterns and expenditure priorities across urban and rural India.
Food Prices Show Mixed Trend
Food inflation was recorded at 2.13 per cent during the month. Prices of several essential vegetables, including potatoes, onions and garlic, declined, offering relief to households. Pulse prices, particularly arhar and tur, also moderated.
However, tomato prices registered an increase, partly offsetting the decline seen in other vegetables.
Housing-related inflation remained stable at 2.05 per cent, indicating relatively steady rental and accommodation costs.
Precious Jewellery Sees Sharp Spike
One of the most striking trends in the data was the steep rise in precious jewellery prices. Inflation in silver jewellery surged by 159.67 per cent, while gold jewellery prices rose by 46.77 per cent compared to the previous year.
The surge has been linked to elevated global bullion prices and sustained domestic demand for precious metals.
Comparing With Earlier Data
For context, inflation figures for December 2025 and November 2025 were reported at 1.33 per cent and 0.71 per cent respectively. However, those numbers were calculated using the old 2012 base year, making direct comparison with January’s data more complex.
What’s New in the CPI Basket?
The updated CPI basket now follows the global COICOP 2018 classification system. Several new items have been added, including rural housing, streaming services, value-added dairy products, barley-based items, pen drives, external hard disks, babysitting services and exercise equipment.
Meanwhile, outdated products such as VCR and DVD players, tape recorders, audio cassettes and certain second-hand goods have been removed from the basket.
Impact on Policy and Economy
The revised CPI framework is expected to provide a more accurate picture of inflation trends in the country. Policymakers, including the Reserve Bank of India (RBI), will rely on the updated data to assess price stability and adjust monetary policy accordingly.
