CPI News

The government is preparing the biggest revamp of India’s inflation index in a decade, with plans to track housing costs monthly and expand coverage beyond cities.

India’s inflation gauge is set for an overhaul with the statistics ministry reworking its Consumer Price Index (CPI). Should this revision take the free public distribution of food staples into account? The answer will impact the data that feeds policymaking.

The trajectory of CPI inflation after October remains upward-sloping. Moreover, the latest downward revision in the CPI inflation forecast for FY26 is entirely tax-cut driven. This suggests that a status quo for the repo rate may be the appropriate outcome.

Attribute India’s recent decline in inflation to both cyclical and structural factors. How sustainable they are must be checked, but signs exist of the economy on its way to an equilibrium of better price stability. RBI might have more policy space already.

Talk of ‘statistical mysteries’ should not distract us. Indian statistics are robust and a low GDP deflator, as seen in data for the first quarter of 2025-26, has a clear explanation. Here’s a closer look at how the economy’s growth estimates are made.

India's retail inflation likely rose in August but remained near the lower limit of the RBI's inflation target range. While heavy rains add risk to food prices, GST rate cuts are expected to offer some relief in the coming months.

July’s reading was just 1.55%, having slid below RBI’s 2-6% target band. But it’s probably a blip, not a sign of weak demand or deflation risk. As we look ahead, policy needs to ensure that price stability endures.