Govt plans base revision of Consumer Price Index (CPI), Download Discussion Paper and Send Suggestions
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The Ministry of Statistics and Programme Implementation (MoSPI) is carrying out a base revision of the Consumer Price Index (CPI). The revision process aims to improve coverage, refine methodologies, explore new data sources, and use modern technology for better price collection and index compilation. The discussion paper PDF is given at last.
What is CPI?
CPI (Consumer Price Index) is an important economic indicator that measures the average change in prices of goods and services commonly used by households over time. In simple terms, CPI shows how much the cost of living is increasing or decreasing — it is used to calculate inflation. CPI tracks prices of items like food, clothing, housing, fuel, healthcare, transport, and education — things that people buy regularly.
Impact of Free Food Grain Distribution Scheme
Since the launch of the free food grain distribution scheme by the Government of India on 1 January 2023, which covers 75% of the rural population and 50% of the urban population, it has become important to ensure that this scheme is appropriately reflected in the CPI and inflation measurement.
Expert Consultations and Previous Discussions
MoSPI has held detailed discussions with national and international experts, including representatives from the Reserve Bank of India (RBI), the International Monetary Fund (IMF), UN institutions, and other government organizations. A brainstorming session on this subject was organized on 20 November 2024, followed by the release of the first discussion note in December 2024.
Release of Discussion Paper 2.0
The newly released Discussion Paper 2.0 incorporates the suggestions and feedback received from these consultations. MoSPI has now invited views and comments from experts, academicians, government bodies, state governments, financial institutions, and other stakeholders on the proposed methodology for the treatment of free PDS items in the CPI compilation framework.
Submission of Comments
Stakeholders may send their comments and suggestions by 22 October 2025 to the following email address: psd-nso2020@mospi.gov.in
