New CPI Series Rolled Out: Retail Inflation at 2.75% in January

India has rolled out a revised Consumer Price Index (CPI) , marking a major shift in how retail inflation is measured. Under the new series, with 2024 as the base year , retail inflation for January stood at 2.75 per cent , according to data released on Thursday.

The updated CPI has been prepared by the National Statistical Office (NSO) under the Ministry of Statistics and Programme Implementation , replacing the earlier 2012-base index. The revision aims to better reflect changing consumption patterns, especially the growing role of digital services, online shopping and travel in household spending.

A key change is the inclusion of OTT subscriptions in the inflation basket. Prices of major streaming platforms such as Netflix, Amazon Prime Video, Jio Hotstar, SonyLiv, YouTube Premium and Zee5 are now tracked directly from service providers’ websites, allowing recurring digital subscription costs to influence headline inflation for the first time.

The new CPI also incorporates e-commerce pricing . While the earlier index relied entirely on physical retail outlets, the revised series captures prices from online markets across large cities, reflecting the increasing share of household spending through digital platforms, particularly in urban India.

Airfares , among the most volatile components of consumer expenditure, are now measured more comprehensively. The CPI tracks both domestic and international flight prices, factoring in advance bookings of 21 days for domestic travel and 60 days for international routes.

The inflation basket itself has been expanded significantly. The number of tracked items has risen to 358 , while services covered have increased to 50 , mirroring India’s shift towards a services-led economy. New items include rural house rent, CNG and PNG fuels, online media services and revised electricity tariffs across multiple consumption slabs.

Methodological improvements include wider use of administrative and digital data, adoption of the COICOP-2018 international classification , and updated item weights based on the Household Consumption Expenditure Survey 2023–24 . Employer-provided accommodation and free social transfers have been excluded in line with international norms.

Under the new series, food inflation in January stood at 2.13 per cent . The government will also release a back series from January 2013 onwards to ensure continuity and long-term comparison.