India's Retail Inflation Hits 2.75% in Jan 2026 Under New CPI Series

• India's retail inflation reached 2.75% in January 2026 under the new Consumer Price Index (CPI) series, falling within RBI's tolerance band for the first time since August 2025.
• This marks the highest inflation level since May 2025 (2.82%), with food inflation at a moderate 2.13%.
• Kotak Mahindra Bank's chief economist, Upasna Bhardwaj, suggests the RBI's rate-cutting cycle has ended, with rates likely on pause through CY26.
• The new CPI series revises the base year from 2012 to 2024, introduces 12 Divisions (replacing 6 Groups), and includes new items like online media services and rural housing.
• Telangana recorded the highest inflation at 4.92%, while items like garlic, onion, and potato saw low inflation; silver jewellery and gold experienced high inflation.