Retail inflation inched up to 3.48% in April as food prices rose further, while experts warned of indirect pressure from higher global energy costs and a potentially weak monsoon
Food inflation, measured by the All India Consumer Food Price Index (CFPI), rose to 4.20 per cent in April from 3.87 per cent in March.
Data showed rural inflation at 3.63 per cent, while urban inflation remained lower at 3.11 per cent
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
Revised 2024 base year, fresh consumption weights and expanded market basket recast state inflation rankings; Telangana tops January list under new series
Next step may be a rate increase as and when the inflation rate grows
At 2.75%, January price rise well below RBI's target of 4%
Food's share in CPI falls sharply in 2024 series, boosting core inflation's role; rural weight declines but remains higher than urban consumption
India's new CPI series modernises inflation measurement, reshapes RBI policy signals, and underscores the need for more market-friendly data release timings
India's new CPI series reflects changing consumption patterns, digital services and better data, marking a major step forward in measuring inflation accurately
Although inflation remains well below the Reserve Bank of India's 4 per cent target, the new figures could prompt the central bank to hold off on any further rate cuts and push up bond yields further
CPI tracks retail price changes across India; January 2026 inflation data shifts to a new 2024 base year reflecting updated spending patterns
India's retail inflation gauge has evolved from fragmented worker-specific indices to a unified CPI framework that now anchors monetary policy and welfare decisions
The old-weight estimates place January CPI inflation at 2.5 per cent- 2.6 per cent, while the new-weight estimates span 2.45 per cent to 3.2 per cent
MoSPI's revised CPI modernises price collection, updates weights and aligns with global standards, reshaping how inflation trends are measured and interpreted
The RBI's MPC held rates steady, citing improved growth and benign inflation, while announcing regulatory steps to boost credit flow and strengthen digital payment safety
India's new CPI series, with lower food weight and higher core components, may nudge headline inflation higher but is expected to improve policy predictability and ease RBI's targeting
As RBI reviews its inflation-targeting framework ahead of 2026, former MPC members back the 4% CPI target, saying the model has anchored expectations despite global shocks
India will sharply reduce the food and beverages weight in the CPI basket as part of a 2024 base-year revamp, aiming to better capture evolving consumption patterns
CPI-food inflation peaked at 16.12 per cent in April 2018, while the lowest reading was recorded in April 2019