Archive · 31 Oct 2025
New CPI to Measure Rural Housing Inflation, Exclude Employer Dwellings
Imagine the government is trying to track how much prices are going up for everyday people, especially for houses and rent.
Right now, they mostly look at cities and sometimes include places where your boss provides your home.
But this isn't the whole picture!
People are proposing some changes to make this tracking better.
First, they want to start collecting rent information from people living in the countryside too, not just in cities.
Second, they want to stop counting houses that are given by employers because those rents might not be what people pay in the real market.
This is important because rent takes up a big part of what people spend.
By making these changes, the government hopes to get a clearer idea of how much housing costs are really changing each month for everyone.
MoSPI proposes monthly collection of rent data for rural areas in the new CPI series, unlike the current six-month collection for urban areas only.
Employer-provided dwellings and government accommodations will be excluded from the housing index to reflect actual rental market transactions.
The revisions aim to make the housing index more robust and representative, better capturing inflation impacts from rentals and housing prices.
The new series will include housing indices for both rural and urban sectors, incorporating imputed rent data for owner-occupied rural dwellings.
Sample coverage for rent data collection will expand to all selected dwellings monthly, a change discussed with IMF experts to address panel approach limitations.
- Who
- Ministry of Statistics and Programme Implementation (MoSPI)
- What
- Proposed changes to the Consumer Price Index (CPI) housing index methodology to include rural areas and exclude employer-provided dwellings.
- When
- The new series is proposed to begin in February; comments on the changes are due by November 20.
- Where
- India (rural and urban areas)
- Why
- To make the housing index more robust and representative, accurately gauge rental and housing price impacts on inflation, and eliminate distortions from employer-provided or concessional dwellings.
Current Housing Index Methodology
Proposed Housing Index Methodology
Geographic Coverage
Current Housing Index Methodology
Collects rent data primarily for urban areas, with semi-annual frequency.
Proposed Housing Index Methodology
Proposes monthly collection of rent data for both rural and urban areas.
Inclusion of Dwellings
Current Housing Index Methodology
Includes employer-provided dwellings and government accommodations, using House Rent Allowance (HRA) as a proxy which may not reflect market rates.
Proposed Housing Index Methodology
Excludes employer-provided dwellings and government accommodations to reflect only actual rental market transactions.
Data Collection Frequency
Current Housing Index Methodology
Rent data collection is currently done every six months for urban areas.
Proposed Housing Index Methodology
Proposes collecting rent data from all selected dwellings each month to ensure representativeness.
- Ministry
- Ministry of Statistics and Programme Implementation (MoSPI)
- Publication
- Discussion paper on the proposed changes in the housing index compilation methodology in the new CPI series
- Comment Deadline
- November 20
- Proposed New Series Start
- February (Year Not Specified)
- Current Housing Index Weight (Urban)
- 21.67%
- Current Housing Index Weight (All-India)
- 10.07%