CPI basket revised to account for inflation from 2026

MoSPI revised the way CPI and inflation calculated starting from Jan 2026 to make it inline with the current purchase patterns.

Background & rationale for the base updation exercise

The CPI series with base year 2024 = 100 has been introduced to ensure the index remains representative of current household consumption patterns. The previous CPI series with base 2012 = 100 served as a stable measure for more than a decade; however, significant structural changes occurred in consumption behaviour, income levels, urbanisation, services sector expansion and digitalisation.

The base updation is based on the latest Household Consumption Expenditure Survey (HCES) 2023–24, providing comprehensive household expenditure data across rural and urban India. An Expert Group on Base Revision was constituted with representation from RBI, academia, line Ministries and statistical experts, with additional consultation from the IMF, World Bank and UNECE's Group of Experts.

What's New in CPI 2024

Base revised from 2012 to 2024 using HCES 2023–24
12 Divisions under COICOP 2018 (vs 6 Groups earlier)
State & item indices for rural, urban & combined

Items added to CPI Basket

Rural housing & streaming services (OTT)
Value added dairy products & barley products
Pen-drive, external hard disk, babysitter, exercise equipment

Items removed from CPI Basket

VCR/VCD/DVD player and hiring charges
Radio, Tape recorder, Clothing second-hand
CD/DVD audio/video cassettes, Coir/rope

Key Statistics — National Level Indices

General CPI Inflation (Combined)
2.75%
Year-on-Year · Jan 2026 vs Jan 2025 Provisional

Food Inflation (CFPI)
2.13%
All India Consumer Food Price Index

Housing Inflation
2.05%
Rural: 2.39% | Urban: 1.92%

Division-wise Inflation Rate (%) — Combined, January 2026

Revised Weights — CPI 2012 vs CPI 2024 (Combined)

What the CPI basket consists of and the corresponding weights between 2012 and 2024 standards ?

CPI 2012 — Group Weights (%)

CPI 2024 — Division Weights (%)

What Does This Mean for a Common Taxpayer Like You?

Your daily expenses are almost under control. Overall prices rose only 2.75% — the lowest in many years. This is excellent news.
Kitchen budget is safe. Food prices (what you buy most) rose just 2.13%. Dal, onion, potato are cheaper — tomatoes are the only pain right now.
Rent & fuel not rising fast. Housing inflation is only 2.05%. Good for those paying EMI or rent.
But jewellery & some personal items jumped. Silver and gold prices shot up globally — that’s why “Personal care & misc.” shows 19%.
Good for your savings & loans. Low inflation usually means RBI may keep interest rates steady or cut them later → cheaper home/car loans possible.
DA / Salary hike may be moderate. Government and private companies use CPI for Dearness Allowance. Expect smaller hikes this time.

Bottom line: Breathe easy. Inflation is low and the new CPI series is more accurate because it reflects what Indians actually buy today (more services, OTT, ready-to-eat food, etc.).

Source(s): EZTax Team and PR from MoSPI.gov.in

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