India's retail inflation in January stood at 2.75% year-on-year under the revised Consumer Price Index (CPI) framework

India's retail inflation in January stood at 2.75% year-on-year under the revised Consumer Price Index (CPI) framework

¨     India's retail inflation in January stood at 2.75% year-on-year under the revised Consumer Price Index (CPI) framework.

¨     This is the first major revision of the CPI series in more than a decade.

¨     The base year has been updated from 2012 to 2024.

¨     According to the previous series, retail inflation in December was 1.33%.

¨     Despite the higher rate, inflation remained within the Reserve Bank of India's tolerance band.

¨     According to data released by the Ministry of Statistics and Program Implementation, rural inflation stood at 2.73% in January.

¨     Urban inflation was slightly higher at 2.77% during the same period.

¨     According to the All India Consumer Price Index, food inflation reached 2.13%. Food prices had declined by 2.7% in December.

¨     The revised CPI reduces the weight given to food items. This reduces the overall impact of food prices on headline inflation.

¨     The increase in inflation in January was primarily due to rising prices of personal care products.

¨   Social security services also contributed to this increase. Prices for education services increased during the month.

¨   Clothing and footwear prices also increased. Restaurant and accommodation services became more expensive.