NEW DELHI: The basket for Consumer Price Index (CPI), which measures retail inflation, is set for a new-age makeover to reflect the current consumption trends and consumer behaviours. Digital consumption will assume significance in the new CPI basket. Online media and streaming services (OTT platforms) will now be tracked, while prices of telephone services—both landline and mobile—will increasingly draw on online and e-commerce data. In line with rising air travel, international air travel has been added within the airfare index.
The energy basket has also been updated to reflect newer fuels used by households. Compressed natural gas (CNG) and piped natural gas (PNG) have been included alongside traditional fuels, capturing the transition in urban transport and cooking energy choices. For the first time, rural house rent will be included, making the housing index more representative. Coverage of house rent has also been expanded in urban areas, with a larger sample size and the exclusion of employer-provided accommodation to avoid distortions from extreme values.
The CPI basket is set for a overhaul with the launch of the CPI 2024 series in February, marking one of the most comprehensive updates to the inflation basket in over a decade. The base year for the CPI series will be 2023-24.
Saurabh Garg, secretary, Ministry of Statistics and Programme implementation, told TNIE that the new CPI basket—based on Household Consumption Expenditure Survey 2023–24—will see significant expansion in the number of items tracked.
“At all-India level, the number of weighted items will increase from 299 in the 2012 series to 358 in 2024 series. Of these, goods will rise from 259 to 308 items, while services will expand from 40 to 50, underscoring the growing role of services in household expenditure,” he said.
The revised CPI will draw prices from a wider geographical base. Garg says the revamped CPI basket is more contemporary, transparent and robust, while maintaining continuity with past series.