Last Updated:June 27, 2025, 16:39 IST
MoSPI will launch a revamped CPI in Feb-Mar 2026, shifting the base year to 2023-24, providing detailed item-level inflation data for rural and urban consumers at the state level.
CPI Inflation Revamp.
India’s inflation data is set to become far more detailed and modernised, as the Ministry of Statistics and Programme Implementation (MoSPI) prepares to launch a revamped Consumer Price Index (CPI). According to a report by Moneycontrol, the new CPI will provide item-level inflation data for both rural and urban consumers at the state level, allowing for deeper insight into region-specific price pressures.
The new CPI data, which is set to launch in February-March 2026, will shift its base year from 2011-12 to 2023-24. It will have a 25% increase in the number of items tracked as compared with the current CPI, according to the report.
The updated basket will reflect evolving consumption patterns, which include consumer tech (Bluetooth earphones, smartwatches), OTT services (streaming subscriptions), app-based transport services (Uber, Ola, Rapido), it added. It will measure inflation for individual items like tomatoes, potatoes, shirts, salwars, frocks, X-rays, doctor fees, and salon services, it said.
This change means that for the first time, questions like whether cab rides cost more in Delhi than in Bengaluru, or if tomato prices are higher in Punjab compared to Tamil Nadu, could be answered through official inflation data, according to the report. It will also allow comparisons such as whether rural households in Bihar are paying more for salon and beautician services than urban residents in Patna.
“Our aim is to provide granular-level data. This has also been a long-standing demand from the Reserve Bank of India,” a source told Moneycontrol.
Currently, the Ministry of Statistics and Programme Implementation (MoSPI) only releases inflation data at the group level — for example, for food or clothing — split between rural and urban populations for each state. For instance, in May, clothing and footwear inflation in rural Bihar was 1.98%, compared to 5.63% in urban Bihar. However, food and beverage inflation was slightly higher in rural Bihar at 0.65%, versus 0.5% in urban Bihar.
Spending patterns have significantly evolved since the last revision of the CPI. In rural India, the share of food in overall consumption has dropped from 52.9% in 2011–12 to 47%, while in urban areas, it has declined from 42.6% to 39.7%. Processed food now occupies a larger share, while traditional staples like cereals have seen a relative decline. The new CPI intends to account for these shifts to present a more accurate picture of inflation.
According to reports earlier, the government was also exploring ways to make CPI revisions more frequent. While the current update cycle is every five years, the ministry is considering a shorter cycle of three to four years to better respond to rapidly changing consumption trends.
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