ECONOMY & INFRASTRUCTURE
GDP / Inflation
India's Retail Inflation Rises to 3.21% in February Under New Base Year Series
Retail inflation (CPI) reached 3.21% in February 2026, up from 2.74% in January, driven by food, housing, and utility price hikes.
The National Statistical Office (NSO) has transitioned to 2024 as the base year for the CPI series, replacing the previous 2012 base.
A significant structural change in the CPI basket includes reducing the weight of 'Food and Beverages' from 45.86% to 36.75%.
The Wholesale Price Index (WPI) inflation also recorded an increase, reaching 2.13% in February 2026 compared to 1.81% in the previous month.
Significance: The shift in base year and weight reduction of food items aims to decrease the volatility of headline inflation and reflect modern household spending habits.
The National Statistical Office (NSO) has transitioned to 2024 as the base year for the CPI series, replacing the previous 2012 base.
A significant structural change in the CPI basket includes reducing the weight of 'Food and Beverages' from 45.86% to 36.75%.
The Wholesale Price Index (WPI) inflation also recorded an increase, reaching 2.13% in February 2026 compared to 1.81% in the previous month.
Significance: The shift in base year and weight reduction of food items aims to decrease the volatility of headline inflation and reflect modern household spending habits.
Key Facts / Static GK
CPI Published by: National Statistical Office (NSO), MoSPI
WPI Published by: Office of Economic Advisor, Ministry of Commerce & Industry
RBI Inflation Target Range: 2% to 6% (Medium-term target: 4%)
Current WPI Base Year: 2011-2012
WPI Published by: Office of Economic Advisor, Ministry of Commerce & Industry
RBI Inflation Target Range: 2% to 6% (Medium-term target: 4%)
Current WPI Base Year: 2011-2012
Practice Quiz — 18 March 2026
Q1. What is the total amount of penalty imposed by the RBI on Manappuram Finance for violating KMP compensation guidelines?
Answer: (C) ₹2.70 lakh — The RBI imposed a monetary penalty of ₹2.70 lakh on Manappuram Finance for non-compliance with Key Managerial Personnel (KMP) compensation guidelines regarding pay deferral, malus, and clawback provisions.
Q2. Regarding the World Bank's Clean Air programs for UP and Haryana, which of the following statements is correct?
Answer: (B) The Haryana project involves a Special Purpose Vehicle (SPV) named ARJUN. — As part of the Haryana Clean Air Project, the state government has set up ARJUN (a Special Purpose Vehicle) for coordination and monitoring. Statement A is wrong (UP got $299.66m), C is wrong (Haryana tenure is longer), and D is wrong (Additional support from UK and Switzerland exists).
Q3. The ₹100-crore Integrated Aqua Park launched by the Union Minister is located in which district of Jammu and Kashmir?
Answer: (C) Anantnag — Union Minister Rajiv Ranjan Singh launched the ₹100 crore Integrated Aqua Park in Anantnag, Jammu and Kashmir, during the NCCWF conference.
Q4. Which of the following is NOT one of the six metro cities included in the Phase 1 launch of the '24 Speed Post' service?
Answer: (C) Pune — The six metro cities covered in Phase 1 are New Delhi, Mumbai, Chennai, Kolkata, Bengaluru, and Hyderabad. Pune is not part of this list.
Q5. What is the primary export target set for the newly launched Special Economic Zone (SEZ) IT Park in Puducherry?
Answer: (D) ₹10,000 crore — The SEZ IT Park in Puducherry has been established with a specific export target of ₹10,000 crore.
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