Archive · 28 Nov 2025

India's High Food Weight in CPI Basket

India's High Food Weight in CPI Basket

India's Consumer Price Index (CPI) gives a lot of importance to food, more than many other countries.

This means that when prices of food items go up or down, it affects the overall CPI a lot.

In India, food makes up 48% of the CPI basket, which is much higher than in countries like the US, where it's only 15%.

Housing is the biggest part of the CPI in the US, taking up 44%, while in India, it's only 16.91%.

Transport and communication have a lower weight in India's CPI compared to other countries.

This shows that people in India spend a bigger part of their money on food and less on housing and transport compared to people in other countries.

Sources