In a landmark shift for India’s economic reporting, the Ministry of Statistics and Programme Implementation (MoSPI) officially released the first set of retail inflation data under the revised Consumer Price Index (CPI) series on February 12, 2026. Headline inflation for January 2026 stood at 2.75%, marking the maiden print of the new series which has transitioned from a 2012 base to a 2024 base year.
While this figure is an increase from the 1.33% recorded in December 2025 (under the old series), it remains well within the Reserve Bank of India’s (RBI) target range of 2%–6%.
The Great Reset: What’s New in the 2024 Base?
The new series reflects a decade of structural transformation in Indian consumption, moving away from a heavy reliance on food and toward services and digital goods.
| Feature | Old Series (2012 Base) | New Series (2024 Base) |
| Total Items | 299 | 358 |
| Food & Beverages Weight | 45.86% | 36.75% |
| Housing Weight | 10.07% | 17.67% (Includes Fuels) |
| Service Items | 40 | 50 |
| New Inclusions | — | Streaming, Babysitters, Gyms, Pen Drives |
Key Technical Shifts:
- Food Weightage Cut: To reduce headline volatility caused by seasonal crops, the weight of food has been slashed by nearly 9 percentage points.
- Housing Expansion: The “Housing” category now includes water, electricity, and gas, and features rural house rent for the first time.
- Modern Consumption: The index now tracks 12 online marketplaces, airfares, and digital subscriptions, acknowledging the “Digital India” shift.
January 2026 Inflation Breakdown
Despite the structural changes, volatile items like gold and certain vegetables continued to influence the needle.
- Food Inflation: Stood at 2.13%. Notably, Tomato prices surged 64.8%, while staples like onions (-29.3%) and potatoes (-29%) remained in deflation.
- Precious Metals: Personal care and miscellaneous goods saw a massive 19% surge, primarily driven by a 46.8% spike in gold and platinum jewelry prices.
- Rural vs. Urban: Inflation was relatively balanced across the board, with rural inflation at 2.73% and urban inflation at 2.77%.
Impact on Monetary Policy
The launch of the new series comes just days after the RBI’s Monetary Policy Committee (MPC) decided to hold the repo rate at 5.25% on February 6.
Chief Economic Advisor V. Anantha Nageswaran noted that the new signals will be more “closely matched to prevailing economic conditions.” Analysts suggest that because the new index is less sensitive to food shocks, the RBI may find it easier to focus on core inflation (which stood near 3% in January) rather than reacting to temporary supply-side spikes in vegetables.
“The lower weightage on food may make headline inflation less volatile, allowing for more calibrated fiscal and monetary policy.” — V. Anantha Nageswaran, Chief Economic Advisor.+1
