New Consumer Price Index Series with 2024 Base Year Marks Retail Inflation at 2.75%
The Ministry of Statistics and Programme Implementation (MoSPI) has released a new Consumer Price Index (CPI) series, updating the base year from 2012 to 2024. This overhaul reflects modern consumption patterns identified in the Household Consumption Expenditure Survey (HCES) 2023-24. The new basket has expanded from 299 to 358 items, with a notable reduction in the weightage of food and beverages from 45.86% to 36.75%. Conversely, the housing category now includes water, electricity, and fuel, with a combined weight of 17.67%. The framework now tracks 12 broad groups instead of six, aiming for more granular inflation monitoring.
Key Points
- The CPI base year has been updated to 2024 to better reflect current household spending habits.
- The number of items in the inflation basket increased to 358, including more services and online platforms.
- Food and beverage weightage was significantly reduced, which may lead to less volatile headline inflation numbers.
- The new series collects data from a wider range of sources, including 1,465 rural and 1,395 urban markets.
Exam Facts
- Base year updated from 2012 to 2024.
- Food and beverages weightage reduced from 45.86% to 36.75%.
- Retail inflation for January 2026 was placed at 2.75% under the new series.
- The basket now includes 358 items (308 goods and 50 services).
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