CPI Base Year Revision
India Updates Consumer Price Index Base Year to 2024: The Ministry of Statistics and Programme Implementation (MoSPI) released the revised Consumer Price Index (CPI) with the new base year 2024 on 13 February 2026. This revision reflects changes in household consumption patterns, economic structure, and modern lifestyle needs. Updating the base year ensures more accurate measurement of inflation in the current economy.
The previous CPI base year was 2012, and periodic revision is essential due to technological advancement and changing consumption behaviour. The revised CPI better represents the present-day Indian economy, especially digital and service sector growth.
Static GK fact: MoSPI is the nodal ministry responsible for collecting, processing, and publishing official statistical data in India.
Role of Household Consumption Expenditure Survey
The new CPI base year is based on the Household Consumption Expenditure Survey (HCES) 2023–24, which provides detailed data on household spending patterns. The survey covers both rural and urban households, ensuring balanced representation.
This survey identifies changes in consumer preferences, including increased spending on digital services, healthcare, housing, and education. These insights help in adjusting item weights in the CPI basket.
Static GK Tip: Household Consumption Expenditure Survey is conducted by the National Sample Survey Office under MoSPI.
Inflation Rate and Latest Data
According to the revised CPI data, the year-on-year inflation rate for January 2026 compared to January 2025 was 2.75% (Provisional). Rural inflation was recorded at 2.73%, while urban inflation stood at 2.77%.
This moderate inflation level indicates relatively stable retail prices. CPI inflation is closely monitored by the Reserve Bank of India (RBI) to decide monetary policies such as repo rate adjustments.
Static GK fact: RBI uses CPI inflation as the primary indicator for its inflation targeting framework since 2016.
Changes in CPI Basket Items
The revised CPI basket includes new items reflecting modern consumption patterns. Newly added items include OTT subscriptions, rural house rent, value-added dairy products, pen drives, babysitting services, and fitness equipment. These additions reflect the growing role of digital services and lifestyle products.
Obsolete items such as VCRs, DVD players, and tape recorders have been removed due to declining usage. This ensures CPI reflects realistic consumption trends.
Static GK fact: CPI basket consists of goods and services like food, housing, clothing, fuel, transport, education, and healthcare.
Calculation Method and Importance
The CPI is compiled monthly by MoSPI for rural, urban, and combined sectors. It uses the Laspeyres Index Formula, which compares current prices with base year prices using fixed weights.
This formula uses three key elements: base year price, base year weight, and current price. CPI helps measure retail inflation, assess purchasing power, and guide economic policy decisions.
Static GK Tip: CPI is also called retail inflation, while Wholesale Price Index (WPI) measures inflation at the wholesale level.
Static Usthadian Current Affairs Table
India Updates Consumer Price Index Base Year to 2024:
| Topic | Detail |
| Released by | Ministry of Statistics and Programme Implementation |
| New Base Year | 2024 |
| Previous Base Year | 2012 |
| Survey Used | Household Consumption Expenditure Survey 2023–24 |
| Inflation Rate January 2026 | 2.75% |
| Rural Inflation | 2.73% |
| Urban Inflation | 2.77% |
| Formula Used | Laspeyres Index Formula |
| New Items Added | OTT subscriptions, babysitting, fitness equipment |
| Items Removed | VCR, DVD players, tape recorders |
| Policy Importance | Used by RBI for inflation targeting and monetary policy |
