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Below the Quote on CPI by Rajeev Sharan, Head – Criteria, Model Development & Research, Brickwork Ratings

"India’s January 2026 CPI inflation at 2.75% on the new 2024 base underscores a still-comfortable price environment. Core inflation, near 3.1%, reflects firm momentum in services and personal care. The base revision, with reduced food weight and expanded services coverage, implies structurally softer headline prints but sharper visibility on demand-side pressures. This should allow the RBI to remain accommodative in the near term, supporting growth, while pivoting toward neutrality if core remains sticky above headline. From a credit outlook perspective, benign inflation and improved measurement strengthen debt-servicing capacity, supporting sovereign and corporate credit profiles."

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