Inflation's quiet comeback: How retail prices increased in February

Precious metals, food and tobacco lift February inflation to 3.2 percent, with rural prices rising faster than cities

Mar 13, 2026, 12:52 IST1 min

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Retail inflation increased sharply, climbing to 3.2 percent in February 2026, the highest since April 2025, as price pressures returned across key consumption categories.

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Three categories drove February's 47-basis-point monthly jump: Paan and tobacco surged 168 basis points (bps), gold and silver-linked personal effects rose 157 bps, and food inflation climbed 134 bps, together pulling headline inflation upwards.

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Silver jewellery led all commodities with 160.8 percent inflation in February, followed by gold/diamond and platinum jewellery at 48.2 percent. Among food items, tomato, coconut and cauliflower prices remained sharply elevated compared to a year ago, even as tomato and coconut cooled slightly from their January highs.

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Beyond food and precious metals, garden and pet products (8 percent), transport services for goods (7.5 percent), and education across all levels—secondary, higher, and early childhood—recorded notable price increases.

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Rural inflation outpaced urban in February, rising to 3.37 percent against urban's 3.02 percent. The gap widened from near-parity in January, reflecting stronger food price pressures in rural areas where consumption baskets are more agriculturally weighted.

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Rural housing inflation edged up to 2.43 percent in February, exceeding urban housing at 2 percent. Overall housing inflation rose to 2.12 percent, suggesting demand-side pressures are reaching beyond cities into smaller towns and villages.