India has launched a revamped Consumer Price Index (CPI) series with 2024 as the base year, promising sharper insights into poverty levels and economic shifts. Chief Economic Adviser V. Anant Nageswaran hailed the update as a game-changer, noting it better captures evolving consumer spending patterns.
In a briefing from New Delhi, Nageswaran explained that the new series reflects a clear pivot in household budgets. Spending on food and beverages has declined, while allocations for services like education, healthcare, travel, and internet services have surged. This shift underscores rising incomes and productivity across the nation.
The improved data will empower policymakers and the Reserve Bank of India to make more precise decisions amid changing economic dynamics. January’s inflation rate under the new series stood at 2.75 percent overall, with rural areas at 2.73 percent and urban at 2.77 percent. Notably, food inflation flipped to 2.1 percent from negative territory in the old series.
Nageswaran emphasized that refining the weightage of food items reduces volatility in inflation figures. This stability will make dearness allowance adjustments and government expenditures more predictable, easing budget planning.
The Ministry of Statistics and Programme Implementation (MoSPI) released the series on Thursday, expanding from six to 12 groups for global alignment. Drawing from the Household Consumption Expenditure Survey (HCES) 2023-24, it now tracks 358 items—308 goods and 50 services—up from 299.
Secretary Saurabh Garg announced plans to revise the base year every five years, with the next survey slated for 2027-28. This proactive approach ensures CPI remains a reliable barometer of public welfare and economic health.