New CPI Series 2024 Explained:

Why in News?

The Ministry of Statistics and Programme Implementation (MoSPI) has introduced a new Consumer Price Index (CPI) series with base year 2024=100. According to the latest data, India’s retail inflation stood at 2.75% in January 2026 (year-on-year), reflecting changes in consumption patterns and economic structure.

What is CPI?

• Consumer Price Index (CPI) measures the average change in prices of goods and services consumed by households.
• It is the most important indicator of inflation in India.
• Used by the Reserve Bank of India (RBI) for monetary policy decisions.

Key Changes in New CPI Series (Base Year 2024)

1. Change in Base Year

• Updated from 2012 → 2024
• Reflects latest consumption patterns of households.

2. Weight Realignment

• Reduced weight: Food & beverages
• Increased weight: Services, Housing

3. Expanded Consumption Basket

• Total items increased:
  • From 299 → 358 items
    • 308 goods
    • 50 services

4. New Items Added

• Online streaming services , Rural housing , Value-added dairy products, Babysitting services, Fitness equipment

5. Inclusion of Rural House Rent

• First-time inclusion
• Improves representation of rural consumption patterns

6. Updated Classification System

• Now follows COICOP 2018 classification
• Shift:
  • From 6 groups → 12 divisions

To know more about Consumer Price Index from exam point of view, Click here