RBI ESINABARD ESISEBI
In one line
The upcoming new Consumer Price Index (CPI) series, set to launch in February 2026, will include housing inflation for rural areas for the first time.
Currently, housing is only factored into urban inflation, due to negligible rural rental markets in the past.
Context:
Emerging Trends Driving the Change
Recent Household Consumption Expenditure Surveys (HCES) indicate a noticeable rise in housing-related spending in rural areas.
This shift is attributed to:
- Increased mobility for work
- Changing consumption patterns
- Growth of rental markets beyond urban centers
A government source confirmed that these factors reflect a flourishing rural housing market.
HCES 2022–23
The latest HCES data is being used to recalibrate the new CPI series with 2024 as the base year.
Notable changes since the last HCES (2011–12):
- Rural Housing MPCE rose from ₹7 to ₹30 (5x increase)
- Housing’s share in total rural expenditure doubled from 0.4% to 0.8%
- Urban Housing MPCE rose from ₹160 to ₹423
- Housing’s share in total urban expenditure reached 6.6%
Broader Macro Revisions in 2026
Alongside the new CPI series, updates are also scheduled for:
- Gross Domestic Product (GDP)
- Index of Industrial Production (IIP)
All will be rebased to 2024 to ensure alignment with current economic patterns.
BS
