India's new CPI inflation series: Everything you need to know about the update

Silver jewellery up 160 percent while food stays moderate at 2.1 percent; southern states lead; urban-rural inflation gap nearly closes

Feb 13, 2026, 13:27 IST1 min

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Adjusted for the new 2024 series, headline inflation climbed to 2.75 percent in January 2026, marking a sharp recovery from the zero-inflation floor hit in October 2025.

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Food's weight fell 6.7 percentage points from 2012 to 2024, while transport rose 2.4 points, reflecting India's evolving consumption patterns and growth.

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The inflation difference between rural and urban areas, which peaked at 1.3 percentage points in November, nearly disappeared by January 2026 under the new CPI series.

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Alcoholic beverages recorded 3.8 percent inflation in January, outpacing food at 2.1 percent, while footwear prices remained nearly flat at 0.2 percent.

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Housing maintenance costs rose 3.2 percent, but household appliances and gardening tools saw deflation, with tools declining 1.2 percent year-on-year.

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Vehicle purchases showed 4.5 percent deflation in January, while garden and pet products surged 8.5 percent and transport services rose 7.5 percent year-on-year.

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Secondary education costs rose fastest at 4.1 percent, exceeding higher education's 3.6 percent and primary education's 3.5 percent in January 2026.

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Other personal effects, driven by jewellery prices, soared 59.2 percent year-on-year, while personal care services rose a modest 3 percent in January.

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Garlic led deflation at minus 53 percent while silver jewellery surged 160 percent, showing extreme divergence in January's commodity price movements.

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Telangana recorded India's highest inflation at 4.92 percent followed by Kerala at 3.7 percent, with southern states dominating the list of regions exceeding the 2.75 percent national average.