New CPI Base 2024: COICOP 2018 and 12 Categories
Why in the news
India moved the Consumer Price Index base to 2024 so inflation measurement mirrors present household spending.
| Feature | Earlier CPI | New CPI |
|---|---|---|
| Classification | 6 broad groups | COICOP 2018, 12 categories |
| Survey input | Older data | Updated HCES |
| Food weight | Higher | Reduced |
| Housing and services | Lower | Higher |
| Rural housing and utilities | Weakly captured | Captured better |
CPI level vs inflation
- Level: 104.46 means a ₹100 basket of 2024 now costs ₹104.46.
- Rate: 2.75% means prices rose that much from 2025 to 2026.
State inflation, January 2026
Telangana about 5%, Kerala about 3.67%, Tamil Nadu about 3.36%, Rajasthan about 3.17%; Karnataka also high, driven by services such as housing, health, education and transport. Rajasthan’s reading reflects better tracking of rural housing and utilities, which the old series understated.
RBI relevance
Helps tell temporary food spikes from lasting service inflation and supports rate decisions.
Exam angle
- Base 2024; COICOP 2018; 12 categories (earlier 6).