Govt. unveils new Consumer Price Index (CPI) series

Retail inflation, measured by the Consumer Price Index (CPI), stood at 2.75% in January 2026, marking the first data release under the revised CPI series with base year 2024. The data was released by the Ministry of Statistics and Programme Implementation (MoSPI).

The CPI serves as the primary inflation gauge for the Reserve Bank of India (RBI) and plays a crucial role in determining monetary policy and interest rate decisions.

New Base Year and Updated Consumption Basket

The revised CPI series shifts the base year from 2012 to 2024 and incorporates updated consumption patterns derived from the latest Household Consumption Expenditure Survey (HCES) 2023–24.

The new series covers All India and State-level item indices for rural, urban and combined sectors. The total number of items has increased to 358 from 299 in the earlier series.

• Goods: Increased to 308 (from 259)
• Services: Increased to 50 (from 40)

Expanded Data Collection Network

Data coverage has been significantly widened:

• Rural markets: Increased to 1,465 (from 1,181)
• Urban markets: Increased to 1,395 (from 1,114)
• Online marketplaces: Data now collected from 12 platforms, marking a new inclusion

The series also strengthens representation of modern consumption items such as online media services and fuels like CNG and PNG.

Adoption of COICOP 2018 Classification

The CPI 2024 series adopts the Classification of Individual Consumption According to Purpose (COICOP) 2018 framework.

Under the revised structure, goods and services are now grouped into 12 broad categories, compared to six groups in the previous series, allowing for more granular analysis of inflation trends.

Major Changes in Weights

The new series reflects changing consumption patterns through revised weight allocations:

• Food and Beverages: Reduced to 36.75% (from 45.86%)
• Housing (including water, electricity, gas and fuels): Increased to 17.67% (from 10.07%)
• Rural house rent included for the first time

Additional groups and their weights include:

• Furnishings, household equipment & maintenance – 4.47%
• Health – 6.1%
• Transport – 8.8%
• Information & communication – 3.61%
• Recreation, sports & culture – 1.52%
• Education services – 3.33%
• Restaurants & accommodation services – 3.35%
• Personal care, social protection & miscellaneous goods – 5.04%

Significance for Policy

As the RBI’s principal inflation indicator, the revised CPI series provides a more accurate and contemporary reflection of household consumption patterns. The broader coverage, updated weights and inclusion of digital consumption categories are expected to enhance the quality of inflation assessment and monetary policy calibration.