Revamping Inflation Metrics: The Digital Age Upgrade

The government plans to enhance the accuracy of the consumer price index (CPI) by incorporating online and e-commerce data. This update extends to revising base years for economic metrics like CPI, IIP, and GDP. The changes aim to integrate real-time data and align with global standards.

The government is set to revolutionize the way retail inflation is calculated by including data from online sources and e-commerce platforms. This move is part of a broader effort to significantly enhance the reliability, accuracy, and overall quality of the Consumer Price Index (CPI).

The Ministry of Statistics and Programme Implementation (MoSPI) is revising the base years for important economic indicators such as the Consumer Price Index (CPI), the Index of Industrial Production (IIP), and the Gross Domestic Product (GDP). The 2024-based CPI data series is expected in February 2026, followed by GDP and IIP updates later that year.

Additionally, MoSPI is expanding its data collection methods to include administrative data and online sources for various sectors, ensuring a comprehensive representation of urban and rural markets. These efforts are anticipated to improve the representativeness and accuracy of India's inflation measures and economic forecasts.

(With inputs from agencies.)