Mumbai: India’s retail inflation, measured through the Consumer Price Index (CPI), stood at 2.75 per cent in January on a year-on-year basis. The data has been released using the new base year of 2024, replacing the earlier 2012 base year. The latest figures were released by the Ministry of Statistics and Programme Implementation.
This inflation level shows that overall price rise remained moderate during the month. The new base year aims to reflect current spending patterns of households more accurately.
Food Prices Stay Stable
Food inflation was recorded at 2.13 per cent in January. Some food items became cheaper during the month. Prices of vegetables such as potatoes, onions and garlic declined. Pulse prices, especially arhar and tur, also eased.
However, tomato prices moved higher during the month. Housing inflation remained controlled at 2.05 per cent, showing stable rental and housing related costs.
Sharp Rise In Precious Jewellery Prices
The data showed a very sharp rise in precious metal jewellery inflation.
Silver jewellery inflation surged 159.67 per cent
Gold jewellery inflation rose 46.77 per cent
This increase reflects strong global precious metal prices and higher demand.
Comparison With Previous Months
For reference, CPI inflation was 1.33 per cent in December 2025 and 0.71 per cent in November 2025, but these were calculated using the old 2012 base year. Hence, direct comparison with January data should be done carefully.
Why The Base Year Has Changed?
The CPI base year has now shifted from 2012 to 2024 using the Household Consumption Expenditure Survey 2023-24. The government said this will improve accuracy and better reflect current lifestyle and spending patterns.
The revision helps policymakers, businesses and financial institutions take better decisions using updated consumption data.
What Has Changed In The CPI Basket?
The new data follows the global COICOP 2018 classification and includes new items such as rural housing, streaming services, value-added dairy products, barley products, pen drives, external hard disks, babysitter services and exercise equipment.
Older items like VCR/DVD players, radio, tape recorders, second-hand clothing and audio cassettes have been removed.
What It Means For Economy?
The new CPI system is expected to give more detailed and realistic inflation trends. It will help the government and the RBI track price risks more accurately.
