New CPI Series: Base Year Moves to 2023-24
Why in the news
The statistics ministry shared details of a rebased Consumer Price Index that better mirrors today’s spending, with a smaller share for food and new digital items.
Key facts
- Body: Ministry of Statistics and Programme Implementation (MoSPI).
- Base year: 2011-12 changed to 2023-24.
- Weights from: Household Consumption Expenditure Survey (HCES) 2023-24.
- CPI stays India’s headline inflation gauge and the anchor for RBI’s inflation targeting.
| Parameter | Old series | New series |
|---|---|---|
| Base year | 2011-12 | 2023-24 |
| Food and beverages weight | About 46% | About 36.5-36.75% |
| Housing weight (with water, electricity, gas) | About 7% | About 17.66% |
| Items in basket | 299 | 358 |
Methodology
- Coverage of 1,465 rural markets and 1,395 urban markets across 434 towns.
- 12 online markets added in large cities.
- House Rent Index improved: rent coverage extended to rural areas; employer-provided accommodation excluded.
- E-commerce prices included: airfares, OTT subscriptions and telecom plans.
Background
- The combined (rural plus urban) CPI began in 2011-12 as the main inflation indicator.
- Old weights aged because of rising incomes, urbanisation and a shift to services, housing, transport and digital consumption.
- Regular base revision is standard international practice.
Significance
- Lower food weight reflects Engel’s Law: food’s share of spending falls as incomes rise.
- Higher weights for transport, health, education and communication.
- Digital economy captured.
- Headline inflation less sensitive to weather-driven food shocks, giving smoother signals for policy.
Exam angle
- New base year: 2023-24.
- Survey used for weights: HCES 2023-24.
- Law linked to food share: Engel’s Law.