The new CPI series is more representative than the older one as it tracks more markets, including those selling online. Data is collected from 1,395 urban markets, up from 1,114
After 12 years, India has changed the weightage of products and services that determine the pace of price rise or inflation based on the inputs received from the Household Consumption Expenditure Survey 2023 — a move that would lead to generation of better inflation data to guide fiscal policy.
In tune with the changing consumption patterns of people in the country, the new inflation series has reduced weights for food, clothing among others and increased the influence of electronics, housing and services on the calculation of retail inflation.
Unlike last year’s trend, the retail inflation as per the new series of the Consumer Price Index (CPI) stood at 2.75 per cent in January 2026, driven mainly by education services and miscellaneous goods. As this is the first data release from the new series, a historical comparison is not yet possible.
The new CPI series is more representative than the older one as it tracks more markets, including those selling online. Data is collected from 1,395 urban markets, up from 1,114. The number of urban markets covered has gone up to 1,465 from 1,181. It tracks prices in 400 towns compared to 310 in the older series. It also monitors price change in 19 per cent more goods and services — 358 in the new series compared to 299 in the older series.
Additional groups in the new series are furnishings, household equipment and household maintenance with a weight of 4.47 per cent, information and communication 3.61 per cent, recreation, sports and culture 1.52 per cent, restaurants and accommodation 3.35 per cent, and personal care, social protection and miscellaneous goods and services 5.04 per cent.
With the weightage for food inflation reduced, vegetables will be unlikely to destabilise governments. However, services and imported goods have gained more clout to move inflation.
