Why in the News
India’s retail inflation, measured by the Consumer Price Index, rose to 3.2% in February 2026, the highest in ten months. The data was released by the Ministry of Statistics and Programme Implementation.
Key Highlights
1. Increase in Inflation
- CPI inflation increased from January 2026 levels to 3.2% in February.
- The last time inflation was higher was April 2025 (3.3%).
2. Major Drivers of Inflation
The rise was mainly driven by:
- Food and Beverages
- Inflation increased to 3.35% in February from 2.1% in January.
- This segment contributed 44 basis points of the 47-basis-point increase in overall inflation.
- Paan, Tobacco and Intoxicants: Inflation rose to 3.5% from 2.9%.
- Personal Care and Miscellaneous Goods
- Inflation remained very high at around 19.6%, largely due to rising gold and silver prices.
Core Inflation
- Core inflation (excluding food and fuel) remained stable at 3.4% between January and February.
Impact of Global Factors
Economists warn inflation may rise further due to:
- Energy supply disruptions caused by the West Asia conflict.
- Higher prices in electricity, gas, fuel, restaurants, and accommodation.
- Depreciation of the Indian rupee.
| [2020] Consider the following statements: The weightage of food in Consumer Price Index (CPI) is higher than that in Wholesale Price Index (WPI). The WPI does not capture changes in the prices of services, which CPI does. Reserve Bank of India has now adopted WPI as its key measure of inflation and to decide on changing the key policy rates. Which of the statements given above is/are correct? (a) 1 and 2 only (b) 2 only (c) 3 only (d) 1, 2 and 3 |
