Datanomics: Items with highest inflation, deflation in Jan same as in Dec

Food deflation and bullion-led inflation offset each other in January, but net impact of top items lifted retail inflation to 2.75% from 1.33% in December

Most of the top five items that saw the highest retail deflation and inflation in January 2026 were the same or their underlying items were the same, as in December 2025. The items that saw deflation were all food items while those experiencing inflation were a mix of food items, bullion and jewellery. Due to lower deflation in food items and a lower weighting in the new series (base year 2024), their impact on overall inflation in January was slightly more muted than in December (old series, base year 2012). On the other hand, items that saw inflation had a greater effect on the overall rate of price rise in January than in the previous month.

 

Mixed price impact 

The top five items that saw the highest deflation rate pulled down the overall inflation rate by 94 basis points in December. Items with the highest inflation rates  pushed up the rate by 1.04 percentage points 

 

Jewellery lifts CPI 

The items that witnessed deflation in January pulled down the inflation rate by 77 basis points. Those witnessing the highest inflation rates pushed up the inflation rate by 1.16 percentage points.  This played a crucial role in increasing the inflation rate to 2.75 per cent in January, compared to 1.33 per cent in December.