India's CPI overhaul: What the new basket reveals about how we spend today

Subscribe to enjoy similar stories. India’s Consumer Price Index (CPI) is finally getting a reset. On Thursday, the statistics ministry will roll out a revised CPI series with a new 2024 base year, replacing the 2012 base year that has measured inflation prints for over a decade.

The new series updates both the base year and methodology to reflect how Indian households actually spend today, using findings from the Household Consumption Expenditure Survey, 2023–24. Mint examines some of the key changes, and why it matters: At the heart of the CPI revamp is a recalibration of weights across spending categories. The most consequential shift is the reduced weight of food and beverages, which falls to 36.8% of the CPI basket from 45.9%.

Within this, food alone drops from 39.1% to 34.8%. The decline reflects both changing consumption patterns—as incomes rise, discretionary spending typically grows faster than food—and reclassification. Prepared meals, for instance, have been moved out of the food basket.

The change matters because food prices are among the most volatile components of CPI, and a lower food weight can materially alter headline inflation prints. At the same time, higher weights for services and miscellaneous items mean inflation in housing, transport, healthcare and personal services will now exert greater influence on the headline number. Based on weights alone, economists estimate CPI inflation for January 2026 could be around 3%—roughly 50 to 80 basis points higher than what the old series might have shown.