{"id":995,"date":"2026-03-23T09:20:11","date_gmt":"2026-03-23T09:20:11","guid":{"rendered":"https:\/\/materials.simplycurrentaffairs.com\/?p=995"},"modified":"2026-04-02T09:20:20","modified_gmt":"2026-04-02T09:20:20","slug":"revised-consumer-price-index","status":"publish","type":"post","link":"https:\/\/materials.simplycurrentaffairs.com\/index.php\/2026\/03\/23\/revised-consumer-price-index\/","title":{"rendered":"Revised Consumer Price Index"},"content":{"rendered":"\n

Revised Consumer Price Index<\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/mark><\/strong><\/h2>\n\n\n\n

About<\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/mark><\/strong><\/h3>\n\n\n\n
    \n
  • The Consumer Price Index (CPI)\u00a0is designed to\u00a0measure the changes over time in the\u00a0general level of retail prices of selected goods and services<\/mark><\/strong>\u00a0that\u00a0households\u00a0purchase\u00a0for the purpose of consumption.<\/strong><\/li>\n<\/ul>\n\n\n\n

    Significance<\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/mark><\/strong><\/h3>\n\n\n\n
      \n
    • The Reserve Bank of India and other statistical agencies study CPI\u00a0so as to\u00a0understand the price change of various commodities and keep a tab on inflation.<\/mark>\u00a0<\/strong>\u00a0\n
        \n
      • Under the\u00a0Flexible Inflation Targeting (FIT) framework,\u00a0<\/strong>the RBI targets to\u00a0contain\u00a0CPI based inflation within 4 percent<\/strong>\u00a0with a tolerance band of (+\/-) 2 percent.\u00a0<\/strong>\u00a0<\/li>\n<\/ul>\n<\/li>\n\n\n\n
      • CPI is also a helpful pointer in\u00a0understanding the real value of wages, salaries and pensions, the purchasing power of a country\u2019s currency, and regulating prices.<\/strong><\/li>\n<\/ul>\n\n\n\n

        Types of CPI<\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/mark><\/strong><\/h3>\n\n\n\n
          \n
        • The\u00a0National Statistical Office (NSO), Ministry of Statistics and\u00a0Programme\u00a0Implementation\u00a0<\/strong>releases\u00a0\n
            \n
          • CPI for Rural<\/strong>\u00a0<\/li>\n\n\n\n
          • CPI for Urban and<\/strong>\u00a0<\/li>\n\n\n\n
          • CPI Combined (computed by combining CPI Rural and CPI Urban).<\/strong>\u00a0<\/li>\n<\/ul>\n<\/li>\n\n\n\n
          • In addition to these,\u00a0different types\u00a0of CPI numbers are released by the government which includes:\u00a0\n
              \n
            • CPI for Industrial Workers (IW)\u00a0<\/strong>[Base year:\u00a02016<\/strong>]\u00a0<\/li>\n\n\n\n
            • CPI for Agricultural\u00a0Labourers\u00a0(AL)\u00a0<\/strong>[Base year:\u00a02019<\/strong>]\u00a0<\/li>\n\n\n\n
            • CPI for Rural\u00a0Labourers\u00a0(RL)\u00a0<\/strong>[Base year:\u00a02019<\/strong>].\u00a0<\/li>\n<\/ul>\n<\/li>\n\n\n\n
            • The\u00a0Ministry of\u00a0Labour\u00a0& Employment\u00a0<\/strong>collects the data for CPI (IW), CPI (AL) and CPI (RL) and compiles it.<\/mark><\/li>\n<\/ul>\n\n\n\n

              CPI Revision<\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/mark><\/strong><\/h3>\n\n\n\n
                \n
              • The\u00a0Ministry of Statistics and\u00a0Programme\u00a0Implementation (MoSPI)\u00a0<\/strong>has\u00a0introduced a new CPI series\u00a0<\/strong>with an\u00a0updated base year of 2024<\/strong>\u00a0(from the earlier 2012),\u00a0wider coverage of goods and services<\/strong>, and\u00a0new weights<\/strong>\u00a0given to goods and services based on consumption patterns revealed in the latest\u00a0Household Consumption Expenditure Survey (HCES) 2023-24.<\/strong><\/li>\n<\/ul>\n\n\n\n
                \n

                Household Consumption Expenditure Survey:<\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/h3>\n\n\n\n
                  \n
                • HCES is conducted by the\u00a0MoSPI\u00a0<\/strong>to collect\u00a0information on consumption and expenditure of\u00a0the households\u00a0on goods and services.\u00a0<\/strong>\u00a0<\/li>\n\n\n\n
                • The survey provides data\u00a0required\u00a0to\u00a0assess trends in economic well-being\u00a0<\/strong>and to\u00a0determine\u00a0and update the basket of consumer goods and services and weights\u00a0<\/strong>used for the\u00a0calculation of the Consumer Price Index.\u00a0<\/strong>\u00a0<\/li>\n\n\n\n
                • Data collected in HCES is also used to\u00a0measure poverty, inequality, and social exclusion.\u00a0<\/strong><\/li>\n<\/ul>\n<\/div><\/div>\n\n\n\n
                    \n
                  • The\u00a0total number of items covered<\/strong>\u00a0under the new series has\u00a0increased to 358<\/strong>\u00a0from the 299 items in the older series. Of these, the\u00a0number of goods covered<\/strong>\u00a0has increased to\u00a0308<\/strong>\u00a0from 259, and the\u00a0number of services<\/strong>\u00a0included has gone up to\u00a050\u00a0<\/strong>from the earlier 40.\u00a0\u00a0\u00a0<\/li>\n\n\n\n
                  • The new series also\u00a0collects data from more sources across the country.\u00a0<\/strong>\u00a0\n
                      \n
                    • Data is collected from 1,465 rural markets, up from 1,181. The number of urban markets covered has gone up to 1,395 from 1,114. Notably, the new series also collects\u00a0data from 12 online marketplaces,<\/strong>\u00a0a new category that has been included now.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
                    • The new series provides more granular data by\u00a0dividing the underlying goods and services into 12 broad groups<\/strong>\u00a0compared to the six groups under the older series.\u00a0\u00a0<\/li>\n\n\n\n
                    • The\u00a0weightage<\/strong>\u00a0assigned to the\u00a0food and beverages category<\/strong>\u00a0has been\u00a0revised downward<\/strong>\u00a0in the new series to\u00a036.75%<\/strong>\u00a0from the earlier 45.86%.\u00a0\u00a0<\/li>\n\n\n\n
                    • The\u00a0housing category<\/strong>, with an earlier weight of 10.07%, has been\u00a0expanded to also include water, electricity,\u00a0gas\u00a0and other fuels<\/strong>, and this combined category now has a weight of\u00a017.67%<\/strong>\u00a0in the new series.\u00a0\u00a0<\/li>\n\n\n\n
                    • The\u00a0additional groups<\/strong>\u00a0in the new series include\u00a0furnishings, household equipment and routine household maintenance<\/strong>\u00a0(with a weight of 4.47%),\u00a0health<\/strong>\u00a0(6.1%),\u00a0transport<\/strong>\u00a0(8.8%),\u00a0information and communication<\/strong>\u00a0(3.61%),\u00a0recreation, sports and culture<\/strong>\u00a0(1.52%),\u00a0education services<\/strong>\u00a0(3.33%),\u00a0restaurants and accommodation services<\/strong>\u00a0(3.35%), and\u00a0personal care, social protection and miscellaneous goods and services<\/strong>\u00a0(5.04%).\u00a0\u00a0<\/li>\n\n\n\n
                    • The\u00a0paan, tobacco and intoxicants\u00a0<\/strong>category saw its weight increase to 2.99% from 2.38% in the older series. The\u00a0clothing and footwear<\/strong>\u00a0category\u2019s weight fell to 6.38% from 6.53%.<\/li>\n<\/ul>\n\n\n\n
                      \"\"<\/figure>\n","protected":false},"excerpt":{"rendered":"

                      Revised Consumer Price Index About Significance Types of CPI CPI Revision Household Consumption Expenditure Survey:<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-995","post","type-post","status-publish","format-standard","hentry","category-economy"],"_links":{"self":[{"href":"https:\/\/materials.simplycurrentaffairs.com\/index.php\/wp-json\/wp\/v2\/posts\/995","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/materials.simplycurrentaffairs.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/materials.simplycurrentaffairs.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/materials.simplycurrentaffairs.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/materials.simplycurrentaffairs.com\/index.php\/wp-json\/wp\/v2\/comments?post=995"}],"version-history":[{"count":1,"href":"https:\/\/materials.simplycurrentaffairs.com\/index.php\/wp-json\/wp\/v2\/posts\/995\/revisions"}],"predecessor-version":[{"id":997,"href":"https:\/\/materials.simplycurrentaffairs.com\/index.php\/wp-json\/wp\/v2\/posts\/995\/revisions\/997"}],"wp:attachment":[{"href":"https:\/\/materials.simplycurrentaffairs.com\/index.php\/wp-json\/wp\/v2\/media?parent=995"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/materials.simplycurrentaffairs.com\/index.php\/wp-json\/wp\/v2\/categories?post=995"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/materials.simplycurrentaffairs.com\/index.php\/wp-json\/wp\/v2\/tags?post=995"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}