New inflation series: Weight of food items set to drop to 37% in CPI from 46%

['Siddharth Upasani', 'Siddharth Upasani Is A Deputy Associate Editor With The Indian Express. He Reports Primarily On Data', 'The Economy', 'Looking For Trends', 'Changes In The Former Which Paint A Picture Of The Latter. Before The Indian Express', 'He Worked At Moneycontrol', 'Financial Newswire Informist', 'Previously Called Cogencis . Outside Of Work', 'Sports', 'Fantasy Football'] The Indian Express 2026-01-29 17:07:36

This helped drag down headline CPI inflation sharply, with the October 2025 print coming in at an all-time low of 0.25%, with food inflation also at a record low of (-)5.02%. CPI food inflation chart CPI food inflation chartAccording to the economic theory developed by German statistician and economist Ernst Engel in the 19th century, as the income of a household rises, the proportion it spends on food reduces. In the past, there have been occasions when the RBI has not been able to cut interest rates because high food inflation has kept overall inflation elevated. The law requires the RBI to target a CPI inflation rate of 4% in a band of 2-6%. While the weight of food will fall in the new CPI series, some other categories are set to see an increase.