Archive · 30 Jan 2026
India Updates Inflation and Industrial Data
The Indian government is making big changes to how they measure industrial production and inflation.
They want to make the data more accurate by adjusting for holidays that move around each year, like Diwali and Holi.
They are also updating the list of items they use to calculate inflation, adding things like smartphones and online services, and removing old items like VCRs.
This will help give a better picture of how much prices are really changing.
The new data will be released in May for industrial production and in 2026 for inflation.
The weight of food and beverages in the new inflation measure will be lower, which might make the numbers less affected by food price changes.
The new list will also include more items and more online markets to better reflect how people shop today.
MoSPI proposes seasonal adjustment of IIP to mitigate effects of moving festivals and calendar variations.
Current IIP data is unadjusted, tracking mining, manufacturing, and electricity sectors.
Base year revision from 2011-12 to 2022-23 for IIP, and from 2012 to 2024 for CPI.
Moving festivals like Diwali and Holi distort high-frequency data like IIP.
MoSPI invites feedback on proposed methodology by February 12 for IIP.
Food and beverages weight reduced to 36.7% in new CPI series from 45.86%.
New CPI series includes 358 items, up from 299, with 12 online markets added for e-commerce price data.
- Who
- Ministry of Statistics and Programme Implementation (MoSPI)
- What
- Proposed seasonal adjustment of IIP and revision of CPI base year to 2024
- When
- New IIP series scheduled for May, CPI series for February 12, 2026
- Where
- India
- Why
- To mitigate distorting effects of moving festivals and calendar variations, and to better reflect changing household consumption patterns
- Proposed Adjustment
- Seasonal adjustment of Index of Industrial Production (IIP)
- Objective
- Mitigate distorting effects of moving festivals and calendar variations
- Current Data
- Unadjusted (original) monthly IIP
- Base Year Revision
- Shifting from 2011-12 to 2022-23 for IIP, 2012 to 2024 for CPI
- New Series Release
- IIP scheduled for May, CPI scheduled for February 12, 2026
- Feedback Deadline
- February 12 for IIP
- Food Weight in CPI
- Reduced from 45.86% to 36.75%
- New Items in CPI
- Smartphones, OTT services, app-based transport, international airfares, rural house rents
- Removed Items from CPI
- VCRs, audio cassettes, employer-provided accommodation, free social transfers
- E-commerce Prices
- Weekly price data from 12 online markets in cities with populations exceeding 25 lakh
- Food and Beverages Weight
- 36.7% in new series, down from 45.86%
- Housing and Utilities Weight
- 17.66% in new series
- Transport Weight
- 8.79% in new series
- Clothing and Footwear Weight
- 6.38% in new series
- Health Weight
- 6.1% in new series
- Personal Care and Miscellaneous Weight
- 5.03% in new series
- Basket Items
- Increased to 358 from 299 in the current series
- Groups in Basket
- Increased from 6 to 12
- Online Markets
- 12 online markets added across 12 towns with populations over 2.5 million
- Price Data Collection
- From 1465 rural markets and 1395 urban markets across 434 towns
- Goods and Services
- Goods increased from 259 to 314, services from 40 to 50 items
Sources
Govt proposes seasonal adjustment of industrial production data
Netflix, Uber, smartphones: The items entering India's retail inflation basket
CPI base year to shift to 2024; food weight cut sharply in revamped inflation index: SBI Research
January inflation data to be based on new CPI series
Experts group recommends lowering food & beverage weight in new CPI
New inflation series: Weight of food items set to drop to 37% in CPI from 46%
Expert panel recommends lowering food weight in retail inflation basket
Food’s weight to be 9 pps lower in new CPI series
CPI base year revision may push overall inflation up by 20-30 bps: SBI report
In charts: What's changing in India's inflation measurement framework
