<p>India's retail <a href="https://www.deccanherald.com/search?q=Inflation">inflation </a>accelerated to 3.21 per cent in February, up from 2.74 per cent in January 2026, government data revealed on Thursday. </p><p>The numbers come amid heightened tensions in West Asia, with the US and Israel attacking <a href="https://www.deccanherald.com/search?q=Iran">Iran</a> in late February. Tehran hit back at neigbhouring countries and has blocked the Strait of Hormuz, through which 20 per cent of the world's oil is shipped. </p><p>Food inflation, which has the largest weight in the CPI basket, rose to 3.47 per cent in February, compared with 2.13 per cent in January, according to data released by the Ministry of Statistics and Programme Implementation. </p>.Retail inflation rises to 2.75% in January on high tomato, gold prices.<p>Inflation in the fuel and light category stood at 0.14 per cent. Further, rural inflation rose to 3.37 per cent in February from 2.73 per cent in January, while urban inflation increased to 3.02 per cent from 2.75 per cent in January. This is below Reserve Bank of India's target of 4 per cent. </p><p>Housing inflation rose to 2.12 per cent last month compared to 2.05 per cent in January. Moreover, inflation in clothing and footwear was slowed to 2.81 per cent in February, against 2.98 per cent in January.<br></p><p><strong>Revised CPI basket</strong></p><p>This is only the second time that the inflation has been calculated based on the revised CPI framework. The new 2024 base year, which had not been updated since 2012, incorporates a new consumption basket to reflect changes in household spending patterns.</p><p>Under the new method, the combined weight of food and beverages has declined to 36.75 per cent from the earlier 45.9 per cent. However, it still remains the largest component of the CPI basket. Food alone now accounts for 34.77% of the index.</p><p>Meanwhile, the weight of housing, water, electricity, gas and other fuels has increased to 17.7 per cent from 16.9 per cent. </p><p>Several services categories like transport, information and communication, and household services, now carry higher weights. It also includes new products like rural housing, OTT subscriptions, value-added dairy products and digital storage devices, while removing outdated goods such as VCRs and audio cassettes. </p>
<p>India's retail <a href="https://www.deccanherald.com/search?q=Inflation">inflation </a>accelerated to 3.21 per cent in February, up from 2.74 per cent in January 2026, government data revealed on Thursday. </p><p>The numbers come amid heightened tensions in West Asia, with the US and Israel attacking <a href="https://www.deccanherald.com/search?q=Iran">Iran</a> in late February. Tehran hit back at neigbhouring countries and has blocked the Strait of Hormuz, through which 20 per cent of the world's oil is shipped. </p><p>Food inflation, which has the largest weight in the CPI basket, rose to 3.47 per cent in February, compared with 2.13 per cent in January, according to data released by the Ministry of Statistics and Programme Implementation. </p>.Retail inflation rises to 2.75% in January on high tomato, gold prices.<p>Inflation in the fuel and light category stood at 0.14 per cent. Further, rural inflation rose to 3.37 per cent in February from 2.73 per cent in January, while urban inflation increased to 3.02 per cent from 2.75 per cent in January. This is below Reserve Bank of India's target of 4 per cent. </p><p>Housing inflation rose to 2.12 per cent last month compared to 2.05 per cent in January. Moreover, inflation in clothing and footwear was slowed to 2.81 per cent in February, against 2.98 per cent in January.<br></p><p><strong>Revised CPI basket</strong></p><p>This is only the second time that the inflation has been calculated based on the revised CPI framework. The new 2024 base year, which had not been updated since 2012, incorporates a new consumption basket to reflect changes in household spending patterns.</p><p>Under the new method, the combined weight of food and beverages has declined to 36.75 per cent from the earlier 45.9 per cent. However, it still remains the largest component of the CPI basket. Food alone now accounts for 34.77% of the index.</p><p>Meanwhile, the weight of housing, water, electricity, gas and other fuels has increased to 17.7 per cent from 16.9 per cent. </p><p>Several services categories like transport, information and communication, and household services, now carry higher weights. It also includes new products like rural housing, OTT subscriptions, value-added dairy products and digital storage devices, while removing outdated goods such as VCRs and audio cassettes. </p>
