A fresh chapter in India’s inflation tracking begins with the 2024-based CPI series rollout. Chief Economic Adviser V. Anant Nageswaran spotlighted its precision in gauging poverty and guiding policy, as consumer habits have transformed dramatically.
Urban and rural households alike are channeling more funds into essential services—think education, medical care, transportation, and digital connectivity—while curbing food expenditures. Nageswaran linked this trend to enhanced earnings and workforce efficiency.
Policymakers stand to benefit immensely, with accurate data illuminating supply-demand balances for interest rate calls and beyond. The series debut coincides with January inflation at a benign 2.75 percent, marginally higher in cities (2.77 percent) than villages (2.73 percent). Food prices, previously in deflation, now show a modest 2.1 percent rise.
By dialing down food’s share in the basket, the new framework curbs erratic inflation swings. This paves the way for steadier dearness allowances, fiscal outlays, and budgetary forecasts.
MoSPI’s overhaul aligns with international norms, splitting categories into 12 from six and boosting tracked items to 358, emphasizing services’ growing footprint. Grounded in recent HCES data, it signals services dominating spend patterns.
Looking ahead, biennial base-year updates are on the cards, with 2027-28 earmarked for the next consumption survey. Nageswaran envisions this fostering robust, responsive economic strategies.