Consumer Price Index (CPI) New Base Year 2024 Explained for UPSC

Context
The government has released a new CPI series with 2024 as the base year, updating weights and coverage to reflect changing consumption patterns.

Consumer Price Index (CPI)

What CPI measures
• Measures retail inflation based on changes in prices of a basket of goods & services.
• Tracks cost of living of households.

Who measures CPI
National Statistical Office (NSO) under MoSPI → CPI-Combined, CPI-Urban, CPI-Rural
Labour Bureau (Ministry of Labour & Employment) → CPI-IW (Industrial Workers), CPI-AL (Agricultural Labourers), CPI-RL (Rural Labourers)

Key changes in new CPI (Base 2024)
• Base year: 2012 → 2024
• Item basket: 299 → 358 items
• Food weight: 45.86% → 36.75%
• Geographic coverage expanded:
• Rural markets → 1,181 → 1,465
• Urban markets → 1,114 → 1,395
• 12 online platforms added for price tracking
• Groups increased: 6 → 12
• Weights based on: Household Consumption Expenditure Survey (HCES) 2023-24

PYQ – 2020, Ans – A
PYQ – 2015, Ans – C
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Consumer Price Index (CPI) New Base Year 2024 Explained for UPSC

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