India's rising inflation is primarily due to a surge in food inflation from -2.71% to 2.13% in January 2026, driven by increased petrol and diesel prices that raised transportation costs.

CURRENT STATE

As a result, India's CPI inflation reached 2.75% in January 2026, the highest in eight months and within the RBI's tolerance band for the first time since August 2025. Delhi vendors report sharp vegetable price increases due to transportation hurdles and fuel price rises.

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