India’s retail inflation rises to 3.21% in February

India’s retail inflation edged up to 3.21 per cent in February 2026, according to data released by the Ministry of Statistics and Programme Implementation (MoSPI) on Thursday. The inflation rate, measured by the Consumer Price Index (CPI), recorded an increase of 47 basis points on a year-on-year basis, reflecting moderate price pressures in the economy.The data showed that inflation in rural areas stood at 3.37 per cent, while urban inflation was recorded at 3.02 per cent during the month. The headline CPI figure remained within the comfort range of the Reserve Bank of India, which targets inflation at 4 per cent with a tolerance band of two percentage points on either side.
Food inflation also remained contained during the period. Inflation based on the All India Consumer Food Price Index (CFPI) stood at 3.47 per cent in February 2026 compared with the same month a year earlier, according to provisional estimates. Rural food inflation was recorded at 3.46 per cent, while urban food inflation came in slightly higher at 3.48 per cent.A notable decline in vegetable prices helped moderate the overall inflation print. The price index for tomatoes, peas and cauliflower registered a drop of more than 10 per cent on a month-on-month basis in February compared with January 2026, the official data showed.
Among states with a population exceeding 50 lakh as per the 2011 Census, the highest inflation rates during February were recorded in Telangana, Rajasthan, Kerala, Andhra Pradesh and West Bengal.MoSPI said the CPI data is compiled using real-time price information collected from 1,407 urban markets, including online platforms, and 1,465 villages across all states and Union Territories. The data is gathered through field visits by officials of the National Statistical Office (NSO).The ministry added that price collection during February covered 100 per cent of rural and urban markets, with 99.89 per cent reporting from rural markets and 99.78 per cent from urban markets.The next CPI data release for March 2026 is scheduled for April 13, 2026, or the following working day if the date falls on a holiday.

(Business Correspondent)