India's Retail Inflation Edges Up to 3.21% in Feb; Food Prices Drive Jump

India’s retail inflation, as measured by the Consumer Price Index (CPI), quickened to 3.21% in February 2026, up from 2.75% in January. This marks the second reading under the government’s revised inflation framework, which recently moved to a 2024 base year.

The latest data, released by the Ministry of Statistics and Programme Implementation (MoSPI) on Thursday afternoon, indicates that while inflation remains well within the Reserve Bank of India’s (RBI) comfort zone of 2% to 6%, price pressures are beginning to build due to a uptick in food costs and a shifting global energy landscape.

Direct year-on-year comparisons with 2025 remain restricted. Because the government reset the index basket in January 2026, moving from the old 2012 base to the current 2024 base, the year-ago figures are not statistically comparable. The new basket was designed to better reflect modern consumption. Thus, significantly reducing the weight of food and beverages (from 45.9% to 36.75%) while increasing the share of housing and services.

Key Data Points: 

• Headline CPI: 3.21% (vs. 2.75% in Jan)
• Food Inflation (CFPI): 3.47% (vs. 2.13% in Jan)
• Rural Inflation: 3.37%
• Urban Inflation: 3.02%
• Core Inflation (Ex-Food & Fuel): Remained stable near 3.4%.

The jump in headline inflation was primarily driven by food and beverages, which saw inflation rise to 3.47%. Under the new series, despite its lower weight, food remains the most volatile component.

Despite the slight rise, inflation has now stayed below the RBI’s medium-term target of 4% for 13 consecutive months. This stability has previously allowed the central bank to maintain a pro-growth stance, though the MPC is expected to remain cautious during its April meeting, given the heightened geopolitical risks.

Also read: If Oil Prices Hit $200/BBL: What Will It Mean For India's GDP Forecast?