The Consumer Price Index measures changes in prices using a fixed basket of goods and services. If this basket does not reflect how people actually spend their money today, inflation can appear low even when household expenses are rising.
India’s current CPI is based on older consumption patterns, with heavy weight on food and limited coverage of modern services such as healthcare, education, and digital connectivity. Updating the index helps ensure inflation data better matches the real cost of living faced by households.
👉 Want to understand what this means for jobs, exports, and India’s manufacturing future?
Read the detailed explainer here → Full Article.