Inflation in India Hits 10-Month High — Key Reasons Explained
India’s retail inflation based on the Consumer Price Index (CPI) increased to 3.21% in February 2026, marking the highest level recorded in the last ten months.
The inflation rate rose from 2.74% in January 2026 to 3.21% in February, mainly due to an increase in food prices and certain consumer goods.
Despite the increase, the inflation rate still remains below the Reserve Bank of India’s medium-term target of 4% and within its tolerance band of 2% to 6%.
| Indicator | February 2026 | January 2026 |
|---|---|---|
| CPI Inflation (Combined) | 3.21% | 2.74% |
| Rural Inflation | 3.37% | 2.73% |
| Urban Inflation | 3.02% | 2.75% |
| Food Inflation | 3.47% | 2.13% |
The sharp rise in food inflation played a major role in pushing up the overall retail inflation.
Several factors contributed to the increase in CPI inflation in February 2026.
Food inflation increased significantly to 3.47%, compared to 2.13% in January, becoming the largest contributor to overall inflation.
Higher prices of gold, silver, and jewellery items also contributed to the rise in inflation.
Prices of personal care products, clothing, and certain household goods also increased during the month.
Some items recorded significant price increases in February 2026.
| Item | Inflation Rate |
|---|---|
| Silver Jewellery | 160%+ |
| Gold and Diamond Jewellery | Around 48% |
| Copra | Around 46% |
| Tomato | Around 45% |
| Cauliflower | Around 43% |
At the same time, prices of some food items declined, helping to control inflation.
| Item | Inflation |
|---|---|
| Garlic | –31% |
| Onion | –28% |
| Potato | –18% |
| Arhar Dal | –16% |
| Litchi | –11% |
These price reductions helped limit the overall inflation increase.
The Consumer Price Index (CPI) measures the average change in prices of goods and services that consumers purchase over time.
It is the most widely used indicator to measure retail inflation in India.
The CPI basket includes categories such as:
CPI data in India is released every month by the Ministry of Statistics and Programme Implementation (MoSPI).
India has introduced a revised CPI series with 2024 as the base year, replacing the earlier 2012 base year.
Key changes include:
The updated CPI series now tracks 358 items compared to 299 items earlier.
The CPI inflation data plays an important role in shaping monetary policy decisions by the Reserve Bank of India (RBI).
Key implications include:
Economists will closely monitor inflation data in the coming months to assess the direction of price stability in the economy.
India’s CPI inflation rate stood at 3.21% in February 2026.
Retail inflation was 2.74% in January 2026.
The rise was mainly due to higher food prices, precious metals, and consumer goods prices.
The Reserve Bank of India targets 4% inflation with a tolerance band of 2% to 6%.
The Ministry of Statistics and Programme Implementation (MoSPI) releases CPI data every month.
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