Your Netflix bills, online shopping and flight tickets will now count in inflation data

India’s retail inflation measurement is set to better reflect real inflation faced by households , with the government rolling out a revised Consumer Price Index (CPI) that brings modern-day expenses such as OTT subscriptions, e-commerce prices and airfares into the official inflation calculation.

The new CPI , with 2024 as the base year replacing 2012 , will be used to compute inflation from next month. The first inflation data under the updated index for January 2026 will be released on February 12 , the Ministry of Statistics and Programme Implementation said.

The overhaul is aimed at capturing the changing consumption behaviour of Indian households, which has increasingly shifted towards digital services, online shopping and travel-related spending areas that were either missing or under-represented in the earlier CPI series.

Under the revised framework, prices of major streaming platforms including Amazon Prime Video, Netflix, Jio Hotstar, SonyLiv, YouTube Premium and Zee5 will be tracked directly from service providers’ websites. For the first time, these recurring digital subscription costs will influence headline inflation numbers.

E-commerce pricing will also become part of inflation measurement. While the existing CPI relied entirely on physical or brick-and-mortar shops, the new series incorporates 12 online markets across cities with populations exceeding 2.5 million. Household spending through online platforms accounts for nearly 4 per cent in rural areas and 10.5 per cent in urban India , according to official data.

Airfares among the most volatile components of household expenditure will now be captured more comprehensively. The CPI will track both domestic and international flight prices , factoring in advance ticket purchases of 21 days for domestic travel and 60 days for international routes .

The inflation basket has also been expanded significantly. The number of tracked items has increased from 299 to 358 , with the number of services rising from 40 to 50 , reflecting India’s shift towards a services-led economy.

Other methodological changes include pricing standard gold and silver jewellery items such as bangles, rings and necklaces instead of customised ornaments, and capturing electricity charges across four slabs 100, 200, 300 and 400 units .

The updated CPI adopts the COICOP-2018 international classification framework , updates item weights using the Household Consumption Expenditure Survey 2023–24 , and expands the use of administrative and digital data for price collection.

Employer-provided accommodation and free social transfers have been excluded, in line with international norms that inflation indices should reflect only actual household expenditure .

Along with January’s inflation numbers, the government will also release a back series from January 2013 onwards for rural, urban and combined inflation, enabling continuity and long-term comparison.

Officials said the revised CPI is expected to deliver a more accurate picture of inflation in a digital, service-driven economy , ensuring that everyday expenses from Netflix subscriptions to online shopping carts and flight tickets are finally reflected in India’s inflation data.