India’s urban–rural inflation gap has narrowed significantly under the new consumer price index (CPI) series, reflecting changes in consumption patterns and revisions in the inflation basket. Latest data show rural inflation at 2.73 percent, just 0.4 percentage points below urban inflation at 2.77 percent, with overall inflation at 2.75 percent. This marks a sharp departure from the older CPI series, where the gap between rural and urban inflation was considerably wider. In December 2025, for instance, urban inflation stood at 2.03 percent compared with 0.76 percent in rural areas, a difference of about 1.27 percentage points. A similar gap of roughly 1.3 percentage points was recorded in November.