Retail Inflation Surges to 2.75% in January 2026, Highest in Eight Months
India's retail inflation, as measured by the Consumer Price Index (CPI), increased to 2.75% in January 2026 under the new series, according to the latest data released. This marks a significant rise and represents the highest level of retail inflation recorded in the past eight months, highlighting ongoing price pressures in the economy.
Key Drivers: Tomato and Gold Prices Lead the Increase
The uptick in inflation is primarily attributed to sharp increases in the prices of essential commodities, notably tomatoes and gold. These items have seen substantial price hikes due to factors such as supply chain disruptions, seasonal variations, and heightened demand, contributing significantly to the overall inflation figure.
Month-on-Month and Year-on-Year Comparison
When compared to previous months, the inflation data shows a notable escalation:
- In December 2025, retail inflation was recorded at 1.33%, indicating a month-on-month increase of over 1.4 percentage points.
- Year-on-year, the January 2026 figure of 2.75% is lower than the 4.26% recorded in January 2025, suggesting some moderation in inflationary pressures over the past year, but the recent spike raises concerns.
This data underscores the volatile nature of inflation, influenced by both domestic and global economic factors, and emphasizes the need for continued monitoring and policy adjustments to manage price stability.
