India has rolled out a new Consumer Price Index (CPI) series using 2024 as the base year, aiming to better reflect household spending patterns. Chief Economic Advisor V. Anantha Nageswaran highlighted that this change enhances the accuracy of poverty estimates and reveals income growth and productivity gains. The updated CPI series indicates a shift towards increased service consumption, with a decrease in the share of food in domestic budgets.
The transition in domestic spending patterns, as observed in the new CPI series, shows a move from food to services like health, education, mobility, and connectivity. In January, the all-India CPI inflation rate was recorded at 2.75% year-on-year, with rural inflation at 2.73% and urban inflation at 2.77%. Notably, food inflation, which was negative until December 2025 under the old series, now stands at 2.1% in the new series.
The revamped CPI series is expected to assist fiscal and monetary policymakers in formulating more effective responses to evolving economic conditions. By capturing changes in household consumption patterns, the new CPI series aims to provide a more accurate representation of inflation trends. The Ministry of Statistics and Programme Implementation has introduced this updated CPI series with a base year of 2024, featuring an expanded basket of 358 items, emphasizing the growing significance of services in household consumption.
Secretary of the Ministry of Statistics and Programme Implementation, Saurabh Garg, revealed that the government plans to conduct base revisions of the CPI every five years, with the next household consumer expenditure survey scheduled for 2027-28.
