India’s retail inflation edged up to 2.75% in January, as per data released under the newly introduced Consumer Price Index (CPI) 2024 series, indicating a modest rise in consumer prices after months of relative stability. The uptick primarily reflects fluctuations in food prices, particularly vegetables, cereals, and select essential commodities.

Key Highlights

• India’s retail inflation increased to 2.75% in January under the revised CPI 2024 series framework.
• Food prices drove the rise, while core inflation remained stable, supporting India’s economic recovery outlook.

According to official figures, the increase in inflation was driven by a mild recovery in food price momentum following seasonal corrections observed in previous months. While prices of vegetables showed upward movement, staples such as cereals, pulses, and edible oils recorded mixed trends, preventing sharper inflationary pressures. Meanwhile, core inflation, which excludes volatile food and fuel prices, remained largely stable, offering comfort to policymakers.

Economists believe that the inflation rate remains well within the Reserve Bank of India’s (RBI) target range of 2–6%, providing room for the central bank to maintain a growth-supportive monetary stance. However, rising geopolitical uncertainties, volatile crude oil prices, and global supply chain disruptions continue to pose upside risks to future inflation.

The revised CPI series, introduced to reflect evolving consumption patterns, provides a more accurate picture of household spending behavior across urban and rural India. Experts suggest that this data framework will help policymakers design better-targeted economic interventions.

Also Read: Retail Inflation Rises to 3-month High of 1.3% in December

With inflation still on the lower side, India’s macroeconomic outlook remains stable. Analysts expect inflation to remain range-bound in the coming months, supported by strong agricultural output, easing commodity prices, and robust domestic demand.