New Consumer Price Index (CPI) Series with 2024 Base Year to Bolster Data Stability
The Ministry of Statistics and Programme Implementation (MoSPI) has released a new series of the Consumer Price Index (CPI) with 2024 as the base year, replacing the 2012 series. This update reflects significant changes in Indian consumption patterns over the last decade, as captured by the Household Consumption Expenditure Survey 2023-24. A major change is the reduction of the weightage of food and beverages from 45.86% to 36.75%. The new index is more granular, covering more goods, services, and online marketplaces, providing a more accurate picture for monetary and fiscal policy formulation.
Key Points
- The new CPI base year is 2024, updated from the previous 2012 base year to reflect modern consumption habits.
- Food and beverage weightage in the CPI basket has been significantly reduced to 36.75%, making the index less volatile.
- The index now includes data from 12 online marketplaces and a wider range of services reflecting the growing service economy.
- More accurate inflation data will assist the RBI's Monetary Policy Committee in making informed decisions on interest rates.
Exam Facts
- New CPI base year: 2024; Previous base year: 2012.
- Food weightage reduced from 45.86% to 36.75%.
- Data is based on the Household Consumption Expenditure Survey 2023-24.
Read it. Retain it. Recall it.
Get spaced-repetition flashcards, daily quizzes and offline access — free on Android.