India’s new CPI series modernises inflation measurement, reshapes RBI policy signals, and underscores the need for more market-friendly data release timings
 "food prices, inflation")
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Besides reflecting the inflationary conditions faced by households, the new CPI series will be particularly significant for the Reserve Bank of India (RBI) in conducting monetary policy.
Business Standard Editorial Comment Mumbai
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The new consumer price index (CPI) series showed that the inflation rate increased to 2.75 per cent in January, up from 1.33 per cent in December (old series). The food-inflation rate was 2.13 per cent. The composition of the CPI has undergone a significant change, along with the shift in the base year to 2024 from 2012. In a rapidly developing country like India, critical indicators must be regularly finetuned to reflect the prevailing situation. However, the revision this time was delayed owing to a variety of factors, including the pandemic. Besides the new CPI series, released on Thursday, the National Statistics Office (NSO) will also release a new series on gross domestic product (GDP) later this month. Together, these will present a more accurate picture of the Indian economy and better inform all stakeholders, including policymakers.
