CPI has been revised for representing current household consumption patterns, price structures, and the evolving nature of the Indian economy.
- The base updation was done on the basis of latest Household Consumption Expenditure Survey (HCES) 2023–24, which provides comprehensive information on household expenditure patterns across rural and urban areas of the country.
Key Highlights of CPI
- Inflation: Year-on-year inflation rate for month of January 2026 over January 2025 is 2.75% (Provisional).
- Corresponding inflation rates for rural and urban are 2.73% and 2.77%, respectively.
- Change in Items: Addition of new items including OTT subscriptions, rural house rent, value-added dairy, pen drives, babysitting services, fitness equipment, and removal of obsolete items likeVCR/DVD, tape recorders.
About CPI
- CPI track changes over time in the general retail prices of a basket of goods and services purchased by households for consumption.
- Compilation: It is compiled by MoSPI every month for rural, urban and combined sectors.
- Formula: For compiling CPI, Laspeyre’s Index Formula is used, which is based on three elements – Base Year Price, Base Year Weights, and Current Month’s Price.
