Retail food inflation remained in the positive zone for the second consecutive month in February, with a year-on-year rise in the relevant index rising 3.47% year-on-year as tomatoes and coconuts became costlier. Food inflation was in the deflation territory for seven months through December.
Food inflation was 2.13% in January, according to the new CPI series with a base year of 2024 introduced by the Ministry of Statistics and Programme Implementation.
However, sequentially, food inflation declined by 0.15% last month, compared to January, 2026.
Mixed Trends
During June–December 2025, food inflation measured through the 2012 series was in the negative zone largely due to the base effect and a fall in prices of vegetables and pulses.
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Despite the rise in food inflation, prices of garlic (-31%), onion (-28.2%), potato (-18.46%), arhar dal (-16%) and lichi (-11.52%) declined in February 2026 on a year-on-year basis. These five commodities have a combined weightage of 2.37% in the Consumer Price Index (CPI) basket.
However the prices of tomato (45%) and copra (46%) reported high inflation, according to the ministry of statistics and programme implementation (MoSPI).
Prices of essential items like pulses and oilseeds, vegetables and fruits have been ruling below the levels that prevailed a year ago because of ample government as well as private stocks and bumper output. Experts said that as the summer season sets in, prices of vegetables and fruits may rise in the next couple of months due to supply constraints.
“Food and beverages have also witnessed inflation of 3.3% as the base effects become less potent. There has also been an increase in prices of some vegetables contributing to this inflation,” said Madan Sabnavis, chief economist, Bank of Baroda. The consulting firm ICRA expects the inflation in the fruit and beverage segment to ease marginally in March 2026.
New 2024 CPI Series Changes
The statistics ministry last month stated that the base year for measuring CPI has been revised from 2012 to 2024 using the Household Consumption Expenditure Survey 2023-24. The weightage of All India Consumer Food Price Index in CPI has declined to about 36.73% from 45.86% in the new series.
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According to the ministry, if the old classification system were followed, the share of Food and Beverages would have declined from 45.86% to 40.10%. However, the share of food and beverages continues to remain the largest component in the CPI basket in the new series. In the new series, the key change is the creation of a separate category for ‘restaurants and accommodation’ services where items like eating out and catering services, which were earlier classified under food and beverages, have now been moved.
Due to improved socio-economic status, in the food and beverages specifically, the largest reduction in consumption is in cereals – rice and wheat, which is now nearly half of what it was earlier, a statistic ministry official had stated adding that households are now spending much more on fruits, fresh vegetables, milk products, fish, meat, etc.
TOPICSinflationThis article was first uploaded on March twelve, twenty twenty-six, at thirty-two minutes past seven in the evening.