CPI Base Revision from 2012 to 2024

The Ministry of Statistics and Programme Implementation (MoSPI) is undertaking a base revision of the Consumer Price Index (CPI) from 2012 to 2024, aligning the index with changing consumption patterns and improving data collection methods.

What is CPI?

• The Consumer Price Index (CPI) measures changes in prices of goods and services consumed by households.
• It is the primary measure of inflation in India.
• Used by the Reserve Bank of India (RBI) to guide monetary policy decisions such as interest rates.
• Forms the basis for:
  • Dearness Allowance (DA) revisions
  • Wage adjustments
  • Social security benefits

Why Base Revision is Needed

• Since 2012, India’s economy has changed significantly:
  • Increased urbanisation
  • Expansion of services sector
  • Rise of digital platforms and online purchases
  • Diversified household spending patterns
• Inflation measurement must reflect current consumption realities, not outdated baskets.

Key Features of CPI 2024 Series

• Updated Consumption Basket
  • Based on the Household Consumption Expenditure Survey (2023–24).
  • Higher weight to items with increased spending.
  • Reduced weight to items with lower spending share.
  • Greater representation of services and lifestyle-related expenditure.
• Improved Methodology
  • Alignment with international statistical standards.
  • Retains India-specific features for domestic relevance.
• Enhanced Data Collection
  • Continued traditional market surveys for essentials.
  • Inclusion of online prices (telecom services, airfares, etc.).
  • Use of computer-assisted price collection to reduce errors and enable real-time validation.
• Integration of Administrative Data
  • Greater reliance on official sources for:
    • Rail fares
    • Postal charges
    • Fuel prices
    • Public Distribution System (PDS) items
  • Improves accuracy and reduces survey bias.