Inclusion of E-commerce Data in Consumer Price Index (CPI)
The Government is in the process of integrating E-commerce data into the new Consumer Price Index (CPI).
Objective and Implementation
- Initiated by the Ministry of Statistics and Programme Implementation (MoSPI).
- Aim: To better reflect changing consumer spending patterns in retail inflation data.
- A revised CPI series is scheduled to be released early next year.
Inter-ministerial Discussions
- MoSPI is in talks with:
- Department for Promotion of Industry and Internal Trade (DPIIT)
- Ministry of Electronics and Information Technology (MeitY)
- Discussions with E-commerce companies focus on data sharing without affecting business strategies or customer privacy.
Base Year and Item Weight Updates
- The new CPI series will use 2024 as the base year, replacing 2012.
- Weights for items will be based on the Household Consumption Expenditure Survey (HCES) 2022-23.
Current CPI Tracking
- CPI currently tracks 299 items across 1,181 rural and 1,114 urban markets.
Impact and Projections
- Inclusion of E-commerce data will enhance the CPI's accuracy and coverage.
- Online purchases account for 7% of household purchases (11% urban, 3.6% rural), reflecting changing consumer behavior.
- Ecommerce sector growth:
- Projected to reach $550 billion by 2030 from $105 billion in 2023.
- Online shoppers in tier 2 and 3 cities increased to 56% in FY24 from 46% in FY20.
