India’s new Consumer Price Index (CPI) series, introduced in 2026 with the base year changed from 2012 to 2024, aims to measure post-pandemic inflation more accurately by reflecting modern Indian spending habits. The updated index expands the consumption basket from 299 to 358 items and includes services such as OTT subscriptions, online food delivery, digital shopping, fitness expenses, and airline travel, while reducing the weight of outdated items and lowering food’s overall share in the basket. The government has also improved data collection using digital and geo-tagged price tracking across online and offline markets. Economists say the new CPI better captures changes caused by COVID-19, including higher spending on healthcare, technology, and services, and it plays a critical role in RBI interest-rate decisions, loan rates, investment planning, and overall economic policy.
