Recent government data suggests retail inflation is at a 10-month high.
On 12 March 2026, the Ministry of Statistics And Programme Implementation (MoSPI) released the Consumer Price Index data. On 16 March 2026, the Wholesale Price Index (WPI) data was released by the Ministry of Commerce and Industry. Let us examine both one by one.
Consumer Price Index (CPI)
The Press Release from MoSPI showed that India’s retail inflation in February, 2026, increases to a 10-month high. In February 2026, there was a 47 basis point increase in year-on-year inflation.
According to the Press Release from MoSPI, the Consumer Price Index (CPI) inflation increased to 3.21 percent in February 2026 from 2.74 percent in January 2026.
The new series allows for calculating headline inflation numbers from February 2021 onwards. Data shows that CPI inflation was last higher in April 2025, when it was 3.3 percent. The increase in headline inflation is due to increase in food inflation.
Source: CPI press release, MoSPI
Food Inflation
The year-on-year inflation rate based on the All India Consumer Food Price Index for February 2026 compared to February 2025 is 3.47 percent. The inflation rate for rural areas is 3.46 percent and for urban areas it is 3.48 percent.
Telangana tops the states with the highest inflation followed by Rajasthan, Kerala, Andhra Pradesh and West Bengal. The graph below shows the top five states with the highest year-on-year inflation rates for February 2026.
Source: CPI press release, MoSPI
The conflict in West Asia is causing disruptions in fuel supplies, which is expected to increase inflation in March in categories such as electricity, gas, other fuels, and restaurant and accommodation. Along with this, the onging average price rise in metals such as gold may push inflation further.
This is the Second CPI data release after the Base Year of CPI changed to 2024.
Wholesale Price Index (WPI)
The annual inflation rate based on the All India Wholesale Price Index (WPI) is 2.13 percent (provisional) for the month of February 2026 (over February, 2025).
This, the highest in 11 months, is mainly attributed to price increases of other manufacturing, manufacture of basic metals, non-food articles, food articles and textiles etc., the press release made public on Monday shows.
WPI Food Inflation
The WPI Food Index, which includes food articles and manufactured food products, declined from 194.2 in January 2026 to 192.9 in February, 2026.
However, the annual rate of inflation (YoY) based on WPI Food Index increased to 1.85 percent in February 2026.
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