CPI Revision to Include Rural Housing for the First Time
Why in the news
The coming CPI revision will start counting rural housing costs. Until now, housing inflation is captured only in the urban index, since rented homes in villages were rare.
Key facts
- Surveys show villagers now spend on rent, linked to job mobility, lifestyle shifts and a growing rural rental market.
- New series launch: February 2026; base year: 2024.
- The update goes with revisions to GDP and the Index of Industrial Production (IIP).
HCES 2022-23 findings
| Measure | Rural | Urban |
|---|---|---|
| Housing MPCE, 2011-12 | ₹7 | ₹160 |
| Housing MPCE, 2022-23 | ₹30 | ₹423 |
| Housing share of spending | 0.4% to 0.8% | 6.6% (latest) |
Significance
- A methodological shift recognising rural India’s economic change.
Exam angle
- Survey behind the revision: HCES 2022-23; new base year: 2024.