Prices on the rise: February retail inflation edges up to 3.21%, but still below last year

India’s retail inflation, measured by the Consumer Price Index (CPI) , climbed to 3.21 per cent in February 2026 , up from 2.74 per cent in January , according to data released by the National Statistics Office (NSO) on Thursday. However, when compared with February 2025 , inflation remains modestly lower , reflecting continued price stability in the consumer economy.

In February 2025 , retail inflation had stood at 3.61 per cent , marking a higher base than this year. This indicates that although prices are rising on a month-to-month basis in 2026, the overall pace of inflation is still softer than a year ago .

Food inflation , a key driver of the CPI, rose to 3.47 per cent in February 2026 from 2.13 per cent in January 2026 , with significant price hikes in items like tomatoes, cauliflower, coconut-copra, and precious metals such as gold and silver. On the other hand, prices of garlic, onion, potato, arhar pulses, and litchi saw some easing. In February 2025, food inflation was slightly higher due to rising prices in several staples, highlighting how month-to-month changes and base effects impact annual comparisons.

Region-wise, rural inflation was at 3.37 per cent , slightly above urban inflation at 3.02 per cent . Analysts note that these figures remain within the Reserve Bank of India’s target range, signalling that while consumer prices are edging up, the year-on-year trajectory continues to be moderate .

Economists suggest that the comparison with last year underscores the sensitivity of household budgets to food and commodity price movements, even as global commodity costs and supply chain dynamics influence domestic prices.