CPI base year revision announcement
Ministry of Statistics Revises Consumer Price Index Base Year to 2024: The Ministry of Statistics and Programme Implementation has revised the Consumer Price Index base year from 2012 to 2024. This revision reflects the post-pandemic shift in household consumption patterns across India. The new CPI series is built using data from the Household Consumption Expenditure Survey 2023–24.
Static GK fact: India revises CPI base years roughly once every 5–10 years to maintain statistical relevance.
Why the CPI matters for India
The Consumer Price Index measures changes in prices paid by households for goods and services. It is the primary inflation indicator used for macroeconomic decision-making. CPI inflation directly influences interest rates, welfare schemes, and wage adjustments.
Static GK Tip: CPI inflation is the official inflation target used by the Reserve Bank of India.
Major structural change in consumption weights
The revised CPI shows a sharp fall in Food and Beverages weight from 45.86% to 36.75%. This reflects rising incomes and diversification of household spending. Food inflation will now have a lower impact on headline CPI.
At the same time, Housing weight increases from 10.07% to 17.66%. Housing costs now play a much larger role in inflation measurement, especially in urban India.
Static GK fact: As income rises, the share of food expenditure falls, explained by Engel’s Law.
Expansion of CPI item basket
The CPI basket expands from 299 to 358 items. New goods and services reflecting digital and service-oriented consumption are included. This allows more granular tracking of price movements.
The revision also improves regional and quality-based representation of goods. It captures evolving preferences in transport, health, and lifestyle services.
Education becomes a standalone category
Education is elevated to an independent CPI category in the 2024 series. Rising household spending on education necessitated this change. Education inflation can now be tracked separately for policy analysis.
Static GK Tip: Education spending is increasingly classified as human capital investment in economic analysis.
Expanded price collection network
Price data will now be collected from 2,860 markets across 434 towns. This includes 1,465 rural and 1,395 urban markets. For the first time, online market prices are included from major cities.
This improves coverage of e-commerce driven price behaviour. It also enhances real-time inflation monitoring.
Adoption of COICOP 2018 framework
India has adopted COICOP 2018, an internationally accepted consumption classification system. This aligns India’s CPI structure with global statistical standards. It improves international comparability of inflation data.
Static GK fact: COICOP is developed under the United Nations Statistical Commission.
Transition to CPI 2024 series
The first CPI 2024 data will be released on 12 February 2026. A linking factor will be provided to maintain continuity with CPI 2012. Initially, both series will coexist to aid smooth policy transition.
Implications for policy and governance
Lower food weight reduces volatility from food price shocks. Higher housing weight increases sensitivity to rental and real estate inflation. Monetary policy responses may evolve as inflation drivers change.
Welfare schemes, pensions, and dearness allowance linked to CPI will also adjust. The revision strengthens evidence-based policymaking.
Static Usthadian Current Affairs Table
Ministry of Statistics Revises Consumer Price Index Base Year to 2024:
| Topic | Detail |
| CPI Base Year | Shifted from 2012 to 2024 |
| Survey Basis | Household Consumption Expenditure Survey 2023–24 |
| Food Weight | Reduced to 36.75 percent |
| Housing Weight | Increased to 17.66 percent |
| Total Items | Expanded to 358 items |
| Education | Introduced as standalone CPI category |
| Market Coverage | 2,860 markets across 434 towns |
| Online Prices | Included for the first time |
| Classification | COICOP 2018 adopted |
| First Release | February 12, 2026 |
