Mumbai : According to the latest Ecowrap report by SBI Research, India's Consumer Price Index (CPI) inflation has undergone a significant recalibration with the introduction of the new 2024 series. The report reveals that headline inflation for January 2026 stood at 2.75% under the new series, compared to 2.55% as per the old linking factor. Notably, core inflation has witnessed a sharp decline to 3.4% in the new series, down from approximately 4.15% in the old series. This shift is primarily attributed to a reduction in the weightage of gold—from 1.08% in the 2012 series to 0.62% in the 2024 series—along with adjustments in other consumption categories.
The report highlights that the new methodology eliminates statistical "noise" and provides a more broad-based view of the economy. Under the new classification, rural inflation was recorded at 2.73% while urban inflation stood at 2.77%, with food inflation remaining stable at 2.13%. A key driver of the new index is the 'Personal Care' division, which saw a high inflation rate of 19.02%, influenced by global gold price trends. By updating the base year and weightages, the new series better aligns with the current spending patterns of Indian households, offering a more accurate picture of price stability.
SBI Research emphasizes that these changes are crucial for policy-making as they reflect modern consumption realities. The decline in core inflation provides a clearer perspective on underlying price pressures, excluding volatile food and fuel components. As the economy synchronizes with these new data points, the report suggests that the 2024 series will be instrumental in helping the central bank and government formulate more effective inflation-control measures.