Former chief statistician says the revised cpi was overdue, supports excluding free pds items and sees little immediate impact on rbi policy decisions
Shift to CPI 2024 base sharply lowers headline index levels in back series, but inflation rate remains identical across rural and urban segments
Food's share in CPI falls sharply in 2024 series, boosting core inflation's role; rural weight declines but remains higher than urban consumption
India's new CPI series modernises inflation measurement, reshapes RBI policy signals, and underscores the need for more market-friendly data release timings
India's new CPI series reflects changing consumption patterns, digital services and better data, marking a major step forward in measuring inflation accurately
January 2026 CPI-based inflation: The inflation remained close to the Reserve Bank of India's lower tolerance threshold
January will be the first month of a new data series based on 2024 prices and will mark the first time since August that inflation returns to the Reserve Bank of India's (RBI) 2% - 6% target band
The RBI's MPC held rates steady, citing improved growth and benign inflation, while announcing regulatory steps to boost credit flow and strengthen digital payment safety
The RBI's MPC unanimously kept the repo rate unchanged at 5.25 per cent, retaining a neutral stance while signalling that future policy decisions will be guided by data from new GDP and CPI series
From shopping baskets to growth calculations, India is updating the base years for CPI inflation and GDP to reflect today's economy, a recalibration that will change headline numbers without altering
India's new CPI series, with lower food weight and higher core components, may nudge headline inflation higher but is expected to improve policy predictability and ease RBI's targeting
India will sharply reduce the food and beverages weight in the CPI basket as part of a 2024 base-year revamp, aiming to better capture evolving consumption patterns
Amid data and fiscal uncertainties, the govt faces the difficult task of creating conditions to boost private capex
December 2025 CPI-based inflation: The increase in headline inflation is mainly attributed to an increase in the prices of items across personal care, vegetables, meat and fish, egg, and pulses
In absolute terms at current prices, the economy is projected to attain the size of ₹357.14 trillion, which is marginally higher than the level assumed in the 2025-26 Budget
India is preparing to rejig methodology for computing CPI and revamp monetary policy mandate for targeting retail inflation in 2026 after a year of benign price situation due to subdued food cost and GST reduction. Consumer Price Index (CPI) based retail inflation remained in the Reserve Bank's comfort zone (2-6 per cent) and is likely to stay that way in the next year also, keeping open the possibility of at least one more reduction in rates by the central bank in the coming months. Besides cooling food prices, the decision of the government to reduce GST rates on about 400 items in September helped in further improving the price situation in the country. The wholesale price index (WPI), too, showed clear signs of easing of inflationary pressures through 2025. Early months recorded positive but declining WPI inflation, reflecting softening price pressures especially in food and fuel categories. By June, WPI entered deflation and the downward trend continued with negative prints in
November CPI-based inflation: The food inflation in November stood at -3.91 per cent, marking an increase from -5.02 per cent in October
The IMF has 'assured' that its 'C' rating for India's national accounts data will be reassessed once the new gdp series is released in feb 2026
A forward looking approach would prompt rate cut as H2 GDP growth likely to be softer
October 2025 WPI-based inflation: The negative rate of inflation is primarily due to a decrease in prices of food articles, crude petroleum & natural gas, electricity, and mineral oils