- Why in news
- On 29 July 2026, the MoSPI told the Lok Sabha that CPI's base year was revised from 2012=100 to 2024=100. The new series was released on 12 February 2026 and widens the basket and market coverage.
- What it is
- The Consumer Price Index measures the change in retail prices of a fixed basket of goods and services bought by households. MoSPI compiles it and uses a base year to set the index at 100. The base is revised from time to time so that the basket and weights reflect current consumption patterns.
- Basket size
- Weighted items rose from 299 to 358: goods from 259 to 308 and services from 40 to 50.
- Weights source
- Item basket and weights are based on the Household Consumption Expenditure Survey (HCES) 2023-24.
- Compiling agency
- CPI is compiled and released by MoSPI (National Statistics Office).
Don’t confuse with CPI vs WPI: CPI tracks retail prices paid by consumers and is compiled by MoSPI. WPI tracks wholesale prices and is compiled by the Office of the Economic Adviser, DPIIT.
Don’t confuse with CPI (Combined) vs CPI-IW: CPI Combined covers rural and urban households and is compiled by MoSPI. CPI-IW covers industrial workers and is compiled by the Labour Bureau.
Economy terms and data: 42 Prelims questions since 2013, rising in recent years; they test what a term or instrument means. In Mains, 12 news-triggered questions.
Why it matters
- A newer basket and weights reflect current spending patterns, so inflation measures are more accurate.
- Online prices and wider market coverage improve capture of price changes.
Problems
- Breaks in series make comparison with past inflation hard, needing linking factors.
- Users such as states and institutions need time to absorb the methodology changes.
Way forward
- Use linking factors and back series on the e-Sankhyiki portal for continuity.
- Keep regular consultations and periodic base revisions.
Put in your answer
Expert Group Report: The Expert Group Report on Comprehensive Updation of CPI was released on 29 January 2026, before the first index of the new series.
- 2021Mains GS3 · Q1Explain how GDP computation methodology changed after the 2015 base revision
- 2024Mains GS3 · Q2Causes of persistent food inflation and RBI monetary policy's effectiveness against it
- 2020Prelims Q67Whether CPI or WPI has higher food weight and captures services prices
- 2010Prelims Q86Whether WPI is monthly only and gives less food weight than CPI(IW)
- 2015Prelims Q29Which body brings out the Consumer Price Index for Industrial Workers
UPSC’s own questions that come close to this issue, from our Prelims and Mains banks.
Prelims practice · Statement I and II
Ours, not from a UPSC paper
Consider the following statements regarding the revision of the Consumer Price Index (CPI) base year:
- Statement-I: Inflation under the new CPI series (base 2024=100) cannot be directly compared with inflation under the old series (base 2012=100).
- Statement-II: The item basket, weights, market coverage and methodology differ between the two series.
Which one of the following is correct in respect of the above statements?
True or false?
1 of 6
Statements the way Prelims prints them. Say first, then see the fact.
1.The base year of the Consumer Price Index has been revised from 2012=100 to 2024=100.
True. Base year is now 2024=100.
2.The item basket and weights of the new CPI series are based on the Household Consumption Expenditure Survey 2023-24.
True. HCES 2023-24 is the source of basket and weights.
3.The number of services in the revised CPI basket has increased from 40 to 50.
True. Services rose from 40 to 50.
4.The new CPI series includes prices from online markets in all towns where price collection is done.
False. Only 12 online markets in 12 towns with population over 25 lakh each were added.
5.Inflation under the new CPI series can be directly compared with the old series because the methodology is unchanged.
False. Direct comparison is not feasible because basket, weights, market coverage and methodology changed.
6.The Consumer Price Index is compiled by the Reserve Bank of India.
False. CPI is compiled by MoSPI (NSO); RBI uses it as its inflation target measure.
Written by us from the release, not by UPSC; checked by a second model.
Worth revising until Prelims 2028: most news questions come within two years of the event.