India to Revamp CPI Basket with 2024 Base Year and Expanded Items
| Category | Details |
|---|---|
| Key Indicator | Consumer Price Index (CPI) |
| Revamp Details | Expansion of CPI basket and update of base year to 2024 |
| Ministry Involved | Ministry of Statistics and Programme Implementation (MoSPI) |
| Survey Basis | Household Consumption Expenditure Survey (HCES) 2023-24 |
| Implementation Timeline | Expected from Q1 2026 |
| Current Base Year | 2012 |
| New Base Year | 2024 |
| Current Basket Items | 299 |
| Expected New Basket | ~407 items |
| Food & Beverage Weight | 54.2% of current CPI |
| Services Representation | 40 items (23.36% weight) |
| Goods Representation | 259 items (76.6% weight) |
| Key Expansion Areas | Digital services, health tech, processed food |
| Suggested Policy Change | Exclusion of food items from inflation targeting |
| Rationale for Exclusion | Food prices prone to supply shocks; monetary policy tools ineffective in controlling such shocks |
| Background Significance | CPI used for inflation targeting by RBI, macroeconomic planning, national income deflation |
| Last Revision | 2015, based on CES 2011-12 (NSS 68th Round) |