Home / Business and Economy / Retail Inflation Gets a Major Overhaul
Retail Inflation Gets a Major Overhaul
14 Dec
Summary
- Consumer Price Index will use a 2024 base year, including more markets.
- E-commerce platforms will be included in price data collection.
- AI and modern technology will enhance CPI accuracy and dissemination.
The Consumer Price Index (CPI) is undergoing a substantial revision, shifting to a 2024 base year to enhance the accuracy of retail inflation measurement. This updated series will draw data from an expanded range of over 280 markets, encompassing both urban and rural areas, and will specifically source information from the most frequented shops for various items.
The revision also marks a significant integration of modern data collection methods. For the first time, prices will be gathered from e-commerce platforms in major cities. Furthermore, administrative data from entities like Indian Railways and the Oil Ministry will be utilized, alongside online compilation for airfares and telecom services.
Leveraging advanced technologies such as AI and natural language processing, the National Statistical Office aims to improve the representativeness, reliability, and accuracy of the CPI. The new series will also facilitate more granular data dissemination, offering state-wise and item-level inflation data for rural, urban, and combined sectors.
