Overview
In March 2026 the CPI rose to 3.4%, marginally above February’s 3.21%. Food inflation accelerated to 3.87%. The Ministry of Statistics and Programme Implementation (MoSPI) also released a revised CPI series with a 2024 base year, replacing the 2012 base.
Key Developments
- March CPI (headline) = 3.4%; February CPI = 3.21%.
- Food price inflation in March = 3.87%, up from 3.47%.
- New CPI basket (2024 series) contains 358 items across 12 divisions, 43 groups, 92 classes and 162 subclasses.
- Rural house‑rent is included for the first time, improving coverage of rural consumption.
- The WPI continues to use a 2011‑12 base year and covers 697 items in three components: Primary Articles (22.62%), Fuel & Power (13.15%) and Manufactured Products (64.23%).
- The ICI showed a provisional rise of 2.3% in February 2026 over February 2025.
Important Facts
• Real interest rate = Nominal rate – Inflation. With a nominal rate of 10% and inflation at 8%, the real rate falls to 2% (real interest rate).
• CPI is compiled by RBI, while WPI data are prepared by the Department for Promotion of Industry and Internal Trade (DPIIT).
• Unlike CPI, WPI excludes services such as education, health, or personal care, which means a rise in service prices lifts retail inflation but leaves wholesale inflation unchanged.
Exam Relevance
The static terms – CPI, WPI, and ICI – frequently appear in Pre‑lims and Mains. Understanding the shift to a 2024 base year, the expanded basket, and the weightage of food items helps answer questions on inflation measurement, monetary policy and sectoral health.
Way Forward
Students should memorise the latest base years (CPI‑2024, WPI‑2011‑12), the composition of the CPI basket, and the weightage of the eight core industries (Petroleum Refinery Products = 28.04%). Track monthly releases from MoSPI and DPIIT to gauge inflation trends and anticipate RBI’s policy stance. Practise MCQs that compare CPI and WPI, and link inflation dynamics to real interest rates and household cost of living.