India’s retail inflation, measured by the Consumer Price Index (CPI), rose to 3.21% in February 2026, up from 2.74% in January, according to provisional data released by the National Statistics Office (NSO) on Thursday.
The latest data from the Ministry of Statistics and Programme Implementation showed that year-on-year CPI inflation increased by 47 basis points in February compared with the previous month.
Inflation in rural areas stood at 3.37%, while urban inflation came in at 3.02%, indicating slightly stronger price pressures in the countryside.
The Consumer Food Price Index (CFPI) based inflation rose to 3.47% in February, significantly higher than 2.13% in January. Rural and urban food inflation were estimated at 3.46% and 3.48%, respectively.
Within the consumption basket, housing inflation remained relatively moderate. Housing inflation for February stood at 2.12%, with rural housing inflation at 2.43% and urban at 2.00%, according to the release.
The CPI is a key indicator tracked by policymakers and the Reserve Bank of India (RBI) while setting monetary policy. Retail inflation remaining close to the lower end of the RBI’s tolerance band of 2-6% suggests that overall price pressures continue to remain contained despite the recent uptick.