Revamping Retail Inflation Metrics with Digital Data Integration

The Indian government is enhancing retail inflation computation by integrating online data sources and e-commerce platforms. Efforts aim to increase the accuracy and reliability of the Consumer Price Index (CPI). Revisions are set for CPI, GDP, and IIP with a rollout of enhanced data methodologies by 2026.

In a strategic move to enhance the reliability and accuracy of retail inflation computation, the Indian government is set to integrate online data sources and e-commerce platforms into the Consumer Price Index (CPI) metrics.

The Ministry of Statistics and Programme Implementation (MoSPI) has announced revisions to the base years for calculating key economic indicators like CPI, the Index of Industrial Production (IIP), and Gross Domestic Product (GDP). The new CPI series, with 2024 as the base year, will launch in February 2026.

The government anticipates that incorporating digital data sources, including e-commerce price data, will improve CPI's overall quality. By expanding coverage in both urban and rural markets, efforts aim to capture evolving consumption patterns across India's diverse economy.