New Delhi: The Ministry of Statistics & Programme Implementation has released the Consumer Price Index (CPI) with Base 2024=100, marking a revision aimed at improving the coverage and representativeness of India’s inflation measurement system.
The updated Consumer Price Index uses item baskets and weights derived from the Household Consumption Expenditure Survey 2023–24.
The revision introduces more granular data designed to support policymakers, financial institutions, businesses, and citizens in making precise, data-driven decisions.
Consumer Price Index Update: Base Revision and Inflation Data
According to the release issued by the National Statistics Office, the base year for CPI has been revised from 2012 to 2024, reflecting structural changes in consumption patterns, urbanisation, digitalisation, and the expansion of the services sector.
The year-on-year inflation rate based on the All-India Consumer Price Index for January 2026 over January 2025 is 2.75% (Provisional). Rural inflation stood at 2.73%, while urban inflation was 2.77%.
Food inflation, measured by the Consumer Food Price Index (CFPI), was 2.13%, with rural inflation at 1.96% and urban inflation at 2.44%. Housing inflation for January 2026 was recorded at 2.05% (Provisional).
Expanded Basket and Improved Methodology
The revised CPI series expands the number of weighted items from 299 to 358, including 308 goods items and 50 services items, strengthening the representation of the services sector in household expenditure.
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The CPI now follows the Classification of Individual Consumption According to Purpose (COICOP) 2018, replacing the earlier six-group structure with 12 divisions, allowing more granular dissemination of indices and inflation rates and improving global comparability.
Data Collection and Digitalisation
Price data for CPI compilation are collected from 1,407 urban markets and 1,465 villages across all States and Union Territories, including online markets, through weekly field visits by statistical staff.
The CPI 2024 series also introduces Computer Assisted Personal Interviewing (CAPI) for electronic price data collection, improving data quality, consistency, and timeliness.
Alternative data sources such as e-commerce pricing, administrative data for fuel and transport services, and online service pricing have also been incorporated to reflect evolving purchasing behaviour.
Rationale for CPI Base Revision
The base updation exercise was conducted using the Household Consumption Expenditure Survey (HCES) 2023–24, ensuring that expenditure weights and price reference periods remain closely aligned with current consumption behaviour.
An Expert Group with representation from the Reserve Bank of India, academia, line ministries, and statistical experts examined methodological, coverage, and data-related aspects of the revision.
The government stated that the CPI 2024 series represents “a comprehensive strengthening of India’s inflation measurement framework” through updated weights, expanded coverage, improved classification, and modern data sources.
- Inflation Data (January 2026, Provisional)
- All-India CPI inflation: 2.75%
- Rural inflation: 2.73%
- Urban inflation: 2.77%
- Food inflation (CFPI): 2.13%
- Housing inflation: 2.05%
- Consumer Price Index Basket and Coverage Changes
- Total weighted items increased from 299 to 358.
- Goods items: increased from 259 to 308.
- Services items: increased from 40 to 50.
- First-time inclusion of rural house rent.
- Increased representation of services sector consumption.
- New Items Added to CPI Basket
- Online media / streaming services
- Value-added dairy products
- Barley and related products
- Pen drives and external hard disks
- Attendant and babysitter services
- Exercise equipment
Rural housing
- Items Removed from CPI Basket
- VCR/VCD/DVD players
- Radio and tape recorders
- Second-hand clothing
- CD/DVD audio-video cassettes
- Coir/rope
- Consumer Price Index: Methodology and Classification Changes
- Adoption of COICOP-2018 classification framework.
- CPI now structured into:
- 12 divisions
- 43 groups
- 92 classes
- 162 subclasses
- 358 items
- Declining share of food and beverages in household expenditure, though still the largest component.
- Consumer Price Index: Data Collection Improvements
- Price data collected from:
- 1,465 villages
- 1,407 urban markets
- Online markets in 12 large towns
- Introduction of Computer Assisted Personal Interviewing (CAPI) for price collection.
- Use of:
- E-commerce price data
- Administrative datasets (fuel, rail fares, postal charges)
- Online service pricing
- Price data collected from:
- Consumer Price Index: Technical and Structural Changes
- CPI 2024 uses updated expenditure weights from HCES 2023–24.
- Linking factors introduced to connect CPI 2012 and CPI 2024 series:
- Rural: 0.5222
- Urban: 0.5320
- Combined: 0.5267
- Release Timeline
- Next CPI release (February 2026): 12 March 2026.
