New CPI Inflation Series
Context:
The Ministry of Statistics and Programme Implementation (MoSPI) has released the new Consumer Price Index (CPI) series with 2024 as the base year, replacing the previous 2012 base year.
The total number of items covered under the new series has increased to 358 from the 299 items in the older series (covering 308 goods and 50 services).
The retail inflation for January 2026 under this new series stands at 2.75%.
Key Methodology Changes:
Base Year is revised from 2012=100 to 2024=100
Weights are derived from the Household Consumption Expenditure Survey (HCES) 2023-24
The series now uses 12 Divisions based on the UN's COICOP 2018 (Classification of Individual Consumption According to Purpose) framework, replacing the earlier 6 broad groups.
The basket now includes 358 items (up from 299), covering 308 goods and 50 services.
Data is collected from 1,465 rural and 1,395 urban markets.
For the first time, 12 online marketplaces are included to track digital consumption.
Additions & Deletions:
Added:
Online streaming services, external hard disks, babysitters, and value-added dairy products.
Removed:
Obsolete items like VCR/VCD players, radios, tape recorders, and second-hand clothing.
Weightage Shift:
The new series reflects a shift in consumption from food to core items.
Category
Old Weight (Base 2012)
New Weight (Base 2024)
Food & Beverages
45.86%
36.75%
Housing (incl. fuel & light)
10.07% (Housing only)
17.67%
Transport
-
8.80%
Health
-
6.10%
Clothing & Footwear
6.53%
2.38%
Significance:
The reduced weight of food (volatile component) is expected to make the headline inflation figure less volatile.
The "Housing" category now comprehensively includes water, electricity, gas, and other fuels.