News context:
The Ministry of Statistics and Programme Implementation issued the first release of the new Consumer Price Index series with base year 2024 on 12 February 2026. It recorded annual inflation for January 2026 at 2.75 percent (provisional); rural stood at 2.73 and urban at 2.77 percent. This study package explains the concept of that release; it should not be read as a new event of October 2026.
Changing the base year means the basket and weights are now based on the Household Consumption Expenditure Survey 2023-24, so that the index better reflects the changing pattern of spending.
The foundation of the new CPI series
Base and survey: base year 2024; weights from the Household Consumption Expenditure Survey 2023-24
Basket and classification: weighted items from 299 to 358; 12 divisions in place of 6 groups
Coverage: 1465 rural, 1395 urban markets and 12 online markets
Annual inflation for January 2026: 2.75 percent (provisional)
Base year and classification:
The old series had base year 2012; the new series has base 2024=100. The classification is now in 12 divisions instead of 6 groups, in line with the international standard (COICOP 2018), and item-level indices are issued at the all-India level for rural, urban and combined, all three.
The number of weighted items rose from 299 to 358: goods went from 259 to 308 and services from 40 to 50.
Entries into and exits from the basket:
The new items include rural housing, online media and streaming services, value-added dairy products, barley and its products, pen drives and external hard disks, attendants, babysitters and exercise equipment.
The old items removed include VCR-VCD-DVD players, radios, tape recorders, second-hand clothes, CD-DVD cassettes and coir rope. Rural housing rent became part of the index for the first time.
Weights and coverage:
Compare the weight of food and beverages within the same classification structure: in the old 6-group structure it fell from 45.86 percent to 40.10 percent, and in the new 12-division (COICOP 2018) structure it fell from 42.62 percent to 36.75 percent. The combined weight of gold, diamond and platinum jewellery is 0.62 percent.
Price collection now takes place from 1465 rural and 1395 urban markets in 434 towns, and for the first time 12 online markets of 12 cities with a population of more than 25 lakh have been added.
Prelims: Practice Questions
Question 1. What is the number of weighted items in the new CPI series?
(a) 299
(b) 358
(c) 434
(d) 250
Answer and Explanation
Answer: (b). Items rose from 299 to 358: goods from 259 to 308 and services from 40 to 50.
Question 2. What is the correct description of the new series' classification?
(a) 12 divisions in place of 6 groups, in line with COICOP 2018
(b) 6 divisions in place of 12 groups
(c) Only 4 new groups were added
(d) The classification remained unchanged
Answer and Explanation
Answer: (a). The classification changed from 6 groups to 12 divisions in line with the international standard COICOP 2018.
Question 3. What has been included for the first time in the new series?
(a) Rural housing rent and price collection from online markets
(b) Foreign tourism spending
(c) Stock market prices
(d) Banks' deposit rates
Answer and Explanation
Answer: (a). Rural housing entered the basket for the first time and prices also began to be taken from 12 online markets.
Sources:
PIB: first release of the CPI with base 2024, 12 February 2026
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