Although there is no clarity about a fresh addition to the basket, but the economic examination of 2023-24 argued for removing food from inflation targeting. | Photocredit: Sushil Kumar Verma
Basket of Consumer Price Index (CPI) will be larger, said Rao Inderjit Singh, Foreign Minister (Independent Charge) in the Ministry of Statistics and Program implementation. CPI is used to distract the inflation of the retail trade.
In an interview with lineSingh said there are around 407 items about which information about quantity and/or value of consumption was collected by households via field research in domestic consumption expenditure investigation (HCES) 2023-24 by NSO.
“Waiting diagram of the CPI for the new basis is derived with the help of the data from Hces 2023-24. The weighing schedule has not yet been completed. The number of items is expected to increase in CPI basket compared to the existing series,” he said.
Exception of Inflation -Targeting Food
Although there is no clarity about a fresh addition in the basket, the economic examination of 2023-24 argued for removing food from inflation argeting. ItBe aware that short -term monetary policy instruments are intended to prevent price pressure that result from excessive total demand growth.
“The use of them (short -term monetary tools) to treat inflation caused by supply restrictions can be counterproductive. That is why it is worth investigating whether the inflation of India should focus on the inflation that food excluding food,” noted the survey.
The Eating and Drinking category makes up 54.2 percent of the current CPI basket. In general, the current basket has 299 items. While 40 items represent services, the remaining 259 items represent goods. Together, the 40 items represent ‘services’ represent 23.36 percent of the total weight, while the 259 items representing ‘goods’ accounts for 76.6 percent of the total CPI basket.
The price data is collected from selected 1,114 urban markets and 1,181 villages that cover all states/uts through personal visits by field staff of Field Operations Division of NSO, Mospi, on a weekly schedule.
New base year
Singh announced that base year for the CPI will change. Currently, the Basic Year in 2012 is. “For CPI, 2024 is identified as the revised base year if the Item Mand and the weight of the items would be decided on the basis of the NSO’s Domestic Consumer Expenditure (Hces) performed in 2023-24. The new CPI series will be expected from the first quarter of 2026, ‘he said.
The base year for CPI was last revised in 2015 when it was changed in 2012 of 2010 and the revised series was released WEF January 2015. The basket with items and their weeping diagrams were drawn up using the modified mixed reference period (MMRP8) Data from consumer spending (CES), 2011, 2011, and the National Settkeephte and the National Settkeephte and the National Settkeephte and the National Settkeephte and), and the National Settkeephte and the National Settkeephte and)), and the National Settlure), and the National Support Proef, and the National Support), and the National Support Proef and))), and the National Support Proef and). is.
CPI figures were originally developed to keep changes in the costs of living for employees, so that their wages could be adjusted in line with price movements. In the course of time, however, the CPI has evolved into a widely used macro -economic tool. It is now an important benchmark for focusing on inflation, monitoring price stability and supervising monetary policy decisions by the reserve Bank of India (RBI). It also serves as a deflator in the national accounts to measure real economic growth.
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Published on June 22, 2025
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