Nachos to massagers and international flights: India’s new CPI basket expands as services weigh more

The new consumer price index from the Ministry of Statistics and Programme Implementation, due Thursday at 4 p.m., will reflect changes in spending patterns since the last overhaul done more than a decade ago.

• India's updated CPI to add gadgets, snacks, and pet expenses.
• Food and beverages' weight drops to 36.8 percent, services rise to 30 percent
• Headline inflation may be less sensitive to food price shocks in the new series

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India’s revised consumer price index (CPI) series, due for release on February 12, will signal a clear shift in how inflation is measured, with updated items and weights that reflect evolving household consumption patterns as incomes rise, lifestyles change, and a larger share of income is spent on services.

The revised basket will now track a range of new items, including packaged snacks such as nachos, wearable gadgets like fitness bands, personal care products such as sanitisers, gadgets including AirPods, and even pet-related spending.

The biggest structural change, however, lies not in the individual items but in the composition of inflation weights. Food and beverages, traditionally the dominant driver of Indian inflation, will see their weight fall sharply to around 36.8 percent from about 45.9 percent in the previous series.

The headline inflation rate may become less sensitive to food price shocks, even though food will remain the single largest component.

The revised basket also reflects the growing importance of services, discretionary consumption and urban lifestyles, with the weight rising to 30 percent from 23 percent earlier. Items such as streaming services, wearable electronics, air travel-related expenses, packaged foods, and lifestyle goods illustrate how consumption is gradually moving beyond essentials toward experiences and convenience-driven spending. The inclusion of pet-related spending similarly reflects a slow but noticeable shift in urban household priorities.

The core goods component has also increased to 27 percent from 22 percent earlier.

Despite the headline-grabbing additions, essentials still dominate inflation measurement. Consumption categories such as milk, fuel, medicines, housing costs and cooked food continue to carry significantly larger weights than newer lifestyle items.

Gold and silver jewellery, an important and volatile component, will not see much change to its weight in the new index.

Economically, the new series could result in somewhat smoother inflation prints during periods of volatile food prices, while making services inflation more visible.

The Economic Survey released last month noted that inflation is likely to stay benign in the coming year. Economists also expect the CPI to be range-bound in the coming year.