E-commerce Price Index: MOSPI’s Plan to Track Online Inflation
Why in the news
The Ministry of Statistics and Programme Implementation (MOSPI) is exploring an index for online prices because CPI and WPI miss e-commerce price movements.
Key facts
- EPI estimates prices of goods and services sold through digital platforms to track inflation there.
- Built like CPI (retail inflation) and WPI (factory-gate prices), with a basket covering food, clothing and footwear, housing, fuel and light, health, education and recreation.
- Market size: ₹12.2 trillion (2024) to ₹24.1 trillion (2028), per GlobalData.
- 895 million internet connections in June 2023; smartphone base to pass 1.1 billion by 2025.
- MOSPI asked 20 leading platforms for data; response was minimal.
- Earlier plan to include e-commerce data in the new CPI series due February 2026 is delayed for lack of data.
Why it matters
- Captures flash sales, discounts, promotional pricing, global supply chain effects and algorithm-driven dynamic pricing.
- Could become a leading inflation indicator and guide policy calibration.
- Investors can gauge demand resilience and online retail health.
Challenges
- Firms may hold back granular price data.
- Consumption patterns differ from traditional retail, so weights must be chosen carefully.
- Volatile online prices need high-frequency capture and smoothing.
Future outlook
- NSO plans a revised CPI in February 2026, plus new GDP and IIP series.
- Could lead to indices for online services in travel, hospitality, education and healthcare.
Exam angle
- Ministry: MOSPI; new CPI series due February 2026.