New CPI Series: Economists Lower FY27 Inflation Forecasts

• Economists revise FY27 CPI inflation forecasts downwards by 35-50 basis points due to the new CPI series.
• Core inflation now holds a 58% weight in the new CPI series (base 2024), up from 47% in the old series (base 2012).
• The number of items tracked for prices increased from 299 to 358 in the new series, reflecting evolving consumption patterns.
• January 2026 data shows headline inflation at 2.75% and core inflation at 3.4%, lower than old series forecasts.
• Lower inflation projections could give the RBI room to extend its policy rate pause, potentially avoiding a rate hike.