Key Takeaways
- India’s inflation calculation basket gets a major update for the first time since 2012.
- New additions include smartphones, Netflix, Uber, millets, and electric vehicles.
- Outdated items like VCRs and black-and-white TVs are being removed.
- The new CPI and WPI series will use 2024 as the base year for more accurate data.
India has overhauled the official basket of goods used to measure retail inflation, adding modern items like smartphones, streaming services, and ride-hailing apps while phasing out obsolete products. This marks the first major update to the Consumer Price Index (CPI) basket in over a decade.
What’s New in the Inflation Basket?
The revised CPI basket now reflects the digital and health-conscious consumption of modern Indian households. Key additions include:
- Digital & Tech: Smartphones, tablets, smartwatches, OTT subscriptions (like Netflix), and online gaming.
- Food & Health: Millets, protein supplements, and health drinks.
- Services: Ride-hailing apps (Uber, Ola) and online food delivery.
- Sustainable Goods: Electric vehicles, solar water heaters, and energy-efficient appliances.
What’s Being Removed?
To keep the index relevant, outdated items that no longer reflect common spending have been dropped. These include VCRs, black-and-white televisions, and cassette players.
Why This Revision Matters
The CPI basket is updated every 5-10 years. The last base year was 2011-12. The new series will use 2024 as the base year and adjust the weightage of items based on current household expenditure.
This revision is crucial as inflation data directly impacts , wage negotiations, and social welfare schemes. A more accurate basket means better policy decisions.
Wholesale Price Index Also Updated
In a parallel move, the government has also updated the Wholesale Price Index (WPI) basket. New items like solar modules and copper concentrate are in, while typewriters and calculating machines are out. The new WPI series will also be based on the year 2024.
Officials stated that these updates are part of a drive to modernize India’s statistical system. The new CPI and WPI series will be launched soon, though a specific date has not been announced.
