India’s retail inflation rises to 3.21 per cent in February: Govt data

Indiarsquos retail inflation rose slightly to 321 per cent in February 2026 compared to the same month last year according to official data released on Thursday by the Ministry of Statistics and Programme ImplementationThe inflation rate is based on the revised Consumer Price Index CPI series with 2024 as the base year which was introduced earlier this year to improve the accuracy and representation of consumption patterns in the countryInflation increases from January levelThe February figure represents an increase of 047 percentage points compared to the revised CPI inflation rate of 274 per cent recorded in January 2026 when the new CPI series was first launchedAccording to the official statement headline inflation rose by about 47 basis points on a yearonyear basis in FebruaryThe inflation rate for rural areas stood at 337 per cent while urban inflation was recorded slightly lower at 302 per cent during the same periodVegetable prices decline sharply in FebruaryDespite the rise in overall inflation prices of several key vegetables registered a significant decline during the monthThe index for vegetables such as tomato peas and cauliflower dropped by more than 10 per cent in February compared to January reflecting improved supply conditions and seasonal trendsHowever overall food inflation remained slightly higher with the inflation rate based on the AllIndia Consumer Food Price Index recorded at 347 per cent in February compared to the same month last yearHousing inflation remains moderateHousing inflation during the month was estimated at 212 per cent indicating relatively stable prices in the housing sectorOfficials said the CPI data provides a comprehensive overview of price movements across various categories of consumer goods and services which are used by policymakers and financial institutions to assess economic conditionsNew CPI base year introduced for improved accuracyThe government has revised the base year for the CPI from 2012 to 2024 using data from the Household Consumption Expenditure Survey 2023ndash24Under the revised methodology the CPI is now calculated with the base index set at 2024 100 and the basket of goods and their weightages have been updated to reflect current consumption patternsOfficials said the revision improves the coverage and representativeness of the inflation measurement and provides more granular data to support better policy decisionsPrice data collected from over 2800 markets and villagesThe inflation data is compiled using realtime price information collected from 1407 urban marketsmdashincluding online marketsmdashand 1465 villages across all states and Union territoriesField staff of the National Statistical Office conduct weekly price collection visits as part of the datagathering processDuring February 2026 price data was collected from 100 per cent of rural and urban markets The reporting rate for prices was 9989 per cent in rural markets and 9978 per cent in urban marketsThe government also announced that CPI inflation data for March 2026 will be released on April 13 2026 or on the next working day if the date falls on a holiday