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The MoSPI said the base revision exercise updates the CPI basket and item weights using data from the latest Household Consumption Expenditure Survey (HCES) 2023-24. The revision also incorporates fresh market surveys, updated base prices and methodological refinements.
Food weight cut sharply
One of the most significant changes is the reduction in the weight of food and beverages in the combined CPI basket to 36.75% under the 2024 structure, compared with 45.86% in the 2012 series. The shift reflects updated consumption patterns and the adoption of the UN’s COICOP 2018 classification framework.
Under the earlier 2012 classification, food’s share would have declined to around 40.10%, the FAQs noted. The sharper drop to 36.75% is due to reclassification under the new international framework.
The overall number of weighted items at the all-India level has increased to 358 from 299 earlier, with goods rising to 308 from 259 and services to 50 from 40.The PIB release includes-
What is the extent of change in the weight of “Food & Beverages” in CPI 2024 series?
Ans: If the CPI 2012 classification system were followed, the share of Food and Beverages would have declined from 45.86% to 40.10%. As per the CPI 2024 classification structure, the share of Food and Beverages, which currently stands at 36.75% for 2024 series, would have been around 42.62% for the 2012 series.
The change in structure between both the series is due to adoption of Classification of Individual Consumption According to Purpose (COICOP) 2018 Framework of United Nations Statistics Division (UNSD).
Question: What are the major changes in CPI 2024 series?
Answered as per PIB filing: Major changes in CPI 2024 includes revising item baskets and weights as per HCES 2023-24, adoption of COICOP – 2018 Framework, refinement in Index compilation methodology, inclusion of alternative data sources, use of modern technology and more granular data dissemination.
Wider coverage, tech-led data collection
The CPI 2024 series covers 1,465 rural markets and 1,395 urban markets across 434 towns, along with 12 online markets in major cities. Price data are collected monthly through tablet-based software using Computer Assisted Personal Interview (CAPI), replacing paper-based methods.
Also Read: The big inflation reset: What India’s new CPI means for you
Online platforms are now used to collect prices for airfares, OTT subscriptions, and certain telecom services. Administrative data sources are also used for rail fares, postal charges and fuel prices, including petrol, diesel and LPG.
MoSPI said both prepaid and postpaid mobile plans are included, with subscriber share data sourced from TRAI reports.
Q&A from the PIB release shows-
How many markets & towns are covered in CPI 2024?
Ans: CPI 2024 series covers 1,465 rural markets and 1,395 urban markets across 434 towns. In addition, 12 online markets are covered across 12 towns having a population of more than 25 lakh.
Back series and linking factor
A back series for the new 2024=100 base will be released on February 12, 2026, covering all-India indices from January 2013 to December 2024. The linking factor has been calculated using 2025 as the overlapping year when both CPI 2012 and CPI 2024 series are available.
At the general level, the linking factors are 0.5222 for rural, 0.5320 for urban and 0.5267 for combined indices.
PIB Q&A:
Question: What is the Base Year of new CPI series?
Ans: The base year of the new CPI series is 2024=100.
Question: What is the base updation exercise?
Ans: The base updation exercise mainly involves revising the CPI item basket and updating item weights based on the latest Household Consumption Expenditure Survey (HCES). This base updation exercise encompasses fresh market survey, base price collection and other methodological refinements.
Question: What is Base Year and why it is important?
Ans: The Base Year is a chosen year taken as a reference point (index = 100) to compare prices over time. It is important because it helps measure how much prices have increased or decreased and keeps inflation figures relevant and easy to understand.Housing, transport gain weight
Under the new structure, the weight of housing, water, electricity, gas and other fuels in the combined index has increased to 17.67% from 16.89%. Transport weight has risen to 8.80% from 6.39%, while the miscellaneous category has also expanded.
Education services carry a weight of 3.3% in CPI 2024. When combined with books and stationery, the effective education share stands at 4.0%, compared with 4.46% in CPI 2012.
Regular base revisions planned
The ministry said it plans to institutionalise base revisions every three to five years, in line with global practices, depending on the availability of HCES data.
Inflation under the CPI is calculated as the year-on-year percentage change in the index. With January’s reading at 2.75%, the data mark the formal transition to the revised inflation framework that will guide monetary policy going forward.