In a major move to modernize how India calculates its cost of living, the Ministry of Statistics and Programme Implementation (MoSPI) announced on January 29, 2026, that it is revamping the Consumer Price Index (CPI) basket.
Starting with the data released on February 12, 2026, the government will include “new-age” items like AirPods, pet food, and air purifiers to better reflect the changing lifestyles and spending habits of Indian households.
1. The New “Modern” Basket
The number of weighted items in the inflation basket is expanding from 299 to 358. This overhaul removes outdated relics like audio cassettes and VCRs, replacing them with products that define modern Indian consumption:
- Tech & Gadgets: AirPods (wireless earphones), fitness bands, and smartphones.
- Lifestyle & Services: Pet food, OTT subscriptions (like Netflix/Amazon Prime), and app-based transport services (Uber/Ola).
- Health & Hygiene: Air purifiers, hand sanitizers, and health supplements.
- Travel & Energy: International airfares, CNG, and piped natural gas (PNG).
- Rural Inclusion: For the first time, rural house rent will be included to make the index more representative of the entire country.
2. The “Food Weight” Shift
The most significant structural change is the reduction in the weightage of food. As per capita income rises, Indians are spending a smaller percentage of their budget on basic groceries and more on services and lifestyle.
| Category | Old Weight (2012 Series) | New Weight (2024 Series) |
| Food & Beverages | 45.86% | 36.75% |
| Housing & Utilities | 16.91% | 17.66% |
| Transport & Communication | 8.59% | 12.41% |
| Miscellaneous (Services) | 28.32% | 36.20% |
3. Why This Matters for Your Wallet
- Less Volatility: Because food prices (like tomatoes and onions) swing wildly due to weather, the old index was very jumpy. By reducing food’s weight, the “headline” inflation number will become smoother and more stable.
- E-commerce Tracking: For the first time, the government will collect weekly price data from 12 major e-commerce platforms in cities with over 25 lakh people, acknowledging that many of us now shop online.
- RBI Policy: This new data will give the Reserve Bank of India (RBI) a clearer picture of “core inflation” (demand-driven price rises), helping them make better decisions on interest rates for home and auto loans.
4. Key Dates to Watch
- February 12, 2026: The first set of inflation data under the new 2024 base year will be released.
- Back-Series Data: The government will also release historical data dating back to January 2013 to allow economists to compare the old and new trends accurately.
Conclusion: A Realistic Mirror of India
This update marks the first comprehensive refresh of the inflation basket in over a decade. By including items like air purifiers and digital subscriptions, the government is acknowledging that what was once considered a “luxury” for a few is now a standard expense for millions. This ensures that the official inflation rate actually “feels” like the price rises you see in your daily life.
