India Launches New CPI Series at 2.75% for January 2026

India's government unveiled a revised Consumer Price Index on Thursday, marking the first reading under the new series at 2.75 percent for January 2026, a figure that falls comfortably within the Reserve Bank of India's target range of 4 percent with a tolerance band of plus or minus 2 percentage points.

The update, released by the National Statistics Office under the Ministry of Statistics and Programme Implementation, shifts the base year to 2024 from 2012 and incorporates data from the Household Consumption Expenditure Survey conducted in 2023-24. This overhaul aims to better capture evolving spending habits in a more urbanized and service-oriented economy. The new basket now includes 358 items, up from 299, with 308 goods and 50 services. Price data collection has expanded to 1,465 rural markets, 1,395 urban centers, and 12 online platforms, using methods like computer-assisted personal interviewing and administrative sources for items such as airfares and streaming services.

Key changes include a reduced weight for food and beverages, now at 36.75 percent compared to 45.86 percent in the prior series, which officials say should dampen headline inflation volatility. Housing,...