Do cab rides pinch Delhiites more than Bangaloreans? Are tomato prices higher in Punjab than in Tamil Nadu? Does rural Bihar pay more for barber and beautician services than urban Patna? Starting 2026, India may finally have answers to these questions through a more granular measure of inflation across states, according to sources who spoke to Moneycontrol.
The revamped Consumer Price Index (CPI), set to launch in February-March 2026, will include item-level data for both rural and urban consumers at state levels. This will allow policymakers and the public to understand which commodities and services are driving inflation, and whether certain regions are experiencing higher price pressures in specific categories.
“We want to give rural and urban item-level data at both the all-India and state levels,” a person aware of the development said.
Granular and relevant
Currently, the Ministry of Statistics and Programme Implementation (MoSPI) releases only group-level inflation data split between rural and urban areas for each state. For example, clothing and footwear inflation in rural Bihar stood at 1.98 percent in May, compared to 5.63 percent in urban Bihar. But food and beverage inflation was slightly higher in rural Bihar (0.65 percent) than in urban areas (0.5 percent).
The upcoming CPI series will dive deeper—measuring inflation for individual items like tomatoes, potatoes, shirts, salwars, frocks, X-rays, doctor fees, and salon services.
“Our aim is to provide granular-level data. This has also been a long-standing demand from the Reserve Bank of India,” the source added.
Expanded basket, Modernised base
The new CPI will shift its base year from 2011-12 to 2023-24, with a 25 percent increase in the number of items tracked and broader market coverage. The updated basket will reflect evolving consumption patterns, which include consumer tech (Bluetooth earphones, smartwatches), OTT services (streaming subscriptions), app-based transport services (Uber, Ola, Rapido).
The ministry is also planning to track online prices from quick-commerce platforms, in 10 cities. This will also be the first CPI to include digital pricing trends, allowing the index to better reflect modern spending behaviours.
Adapting to changing consumption patterns
Spending habits have changed significantly since the last CPI revision. In rural India, food now makes up 47 percent of total consumption expenditure, down from 52.9 percent in 2011-12. In urban areas, the share has fallen from 42.6 percent to 39.7 percent.
Within food categories, processed foods have gained share, while the share of cereals has declined. The new CPI aims to reflect these shifts more accurately.
As Moneycontrol earlier reported, the government is also considering accelerating CPI revisions. While currently scheduled every five years, the ministry is exploring a 3–4-year cycle going forward.
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