India Inflation Returns to RBI Tolerance Band

EthereumCraftsman · 2026-02-12T11:00:18+00:00

In January 2026, India's inflation rate rose to 2.75%, surpassing expectations. This is the first reading in the new CPI, reflecting updated consumption data. Food inflation spiked, while categories like personal care and health saw notable increases.

EthereumCraftsman

2026-02-12 11:00:18

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The inflation rate in India rose to 2.75% in January of 2026, firmly above market expectations of 2.4%. The result marked the first inflation rate within the RBI’s tolerance band of 2%-4% since August of the previous year. The rate was the first measurement in India’s new CPI, which updated the weights of different goods within the index according to the Household Consumption Expenditure Survey from two fiscal years ago. Food inflation, which now accounts for a much smaller portion of the Indian consumer basket, surged to 2.13% from the -2.71% in the previous month, which used the old aggregators for the index. Meanwhile, inflation was elevated for personal care and social protection (19.02%), health (2.19%), and clothing and footwear (2.98%). In turn, transportations inflation was muted at 0.09%. From the previous month, the new consumer price index was at 0.35%.

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