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flag India's new inflation data shows January inflation at 2.77%, prompting potential rate hold and market scrutiny.

flag India released a revised consumer price index based on a 2024 base year, showing January inflation at an estimated 2.77%, up from 1.33% under the old measure. flag The update reduces food's weight to 36.8% and increases core inflation's share to nearly 58%, improving accuracy after past forecasting errors. flag The Reserve Bank of India may hold rates steady if the data signals inflation easing toward its 4% target, delaying rate cuts and potentially raising bond yields. flag Financial markets are watching closely, as the change reflects economic shifts toward services and housing and could lead to an upward GDP revision by February 27.

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