To better align with rapidly evolving consumption patterns, the statistics and programme implementation ministry may revise the Consumer Price Index (CPI) more frequently, Moneycontrol has learnt.
“We are looking at whether we can revise the Consumer Price Index every four years,” a person familiar with the developments said.
This potential shift follows the ministry’s decision to conduct the Household Consumption Expenditure Survey (HCES), which provides data to calculate CPI, every three years instead of the current five years. At present, CPI revisions are made after each HCES round.
The most recent survey was conducted in FY24 and its findings are expected to shape the new inflation series to be released in this quarter.
The updated HCES will also pave the way for the inclusion of new consumption items such as Bluetooth earphones, gaming consoles like PlayStation, and OTT services in the CPI basket.
As reported earlier by Moneycontrol, the ministry is also preparing to collect online price data across 12 cities with populations exceeding 2.5 million in response to the growing prevalence of e-commerce and quick commerce platforms.
The 2023–24 HCES indicated that online shopping accounts for about 10 percent of total spending in urban areas and 3–4 percent in rural India.
As part of the new methodology, the ministry also plans to source air and train fares data from digital platforms.
Adjustments are also being made to better capture the impact of electricity subsidies and changes in housing trends in the sub-indices.
The current CPI series includes obsolete items such as tape recorders, VCRs and horse carts, which no longer reflect the consumption behaviour.
A CPI revision has been pending for more than a decade. The last update was based on the 2011–12 base year. The proposed 2017–18 HCES was scrapped due to concerns over data quality.
According to ministry officials, the next HCES —following the new frequency — would likely be available in 2027–28.
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