Consumer Price Index: CPI Inflation Rises to 3.2% in February

Context

Retail inflation rose to a 10-month high of 3.2% (Feb 2026) mainly driven by food and beverages. Pressures are also visible in tobacco and personal care segments, with risks from fuel disruptions in West Asia, rupee weakness, and rising gold and silver prices.

CPI (Consumer Price Index)

February 2026 Inflation Drivers

  • Food and beverages led the rise.
  • Pan, tobacco and intoxicants increased.
  • Personal care and miscellaneous inflation around 19.6% (linked to gold and silver prices).
  • Core inflation broadly stable around 3.4%.

CPI vs WPI

CPI (Consumer Price Index)

  • Retail-level prices
  • Includes services
  • Reflects consumer inflation
  • Used as RBI policy anchor

WPI (Wholesale Price Index)

  • Wholesale prices
  • Excludes services
  • Reflects producer-side inflation trends
PYQ – 2020, Ans – A
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