New-look CPI may sport price data from e-commerce

India's new-look consumer price index (CPI) may include data from e-commerce platforms, among a wider set of items, to make it more representative of price changes in the economy. The government will also set a new base year to refine the index that is used to set and revise benchmark interest rates.

- Rhik Kundu

The proposed revisions to the Consumer Price Index (CPI) include measures such as leveraging modern data collection techniques to source price information from e-commerce platforms, considering only privately rented homes to calculate housing rents and expanding the number of markets covered, according to a recent presentation by the ministry of statistics and programme implementation.

These changes are aimed at capturing spending patterns accurately across urban and rural regions as part ofa larger effort to modernise India's statistical framework. Frequent revisions, ideally every five years, are essential, given the rapid shifts in consumption, l ndia's new-look consumer especially in a developing economy like India, so that it reflects contemporary consumption patterns as far as possible, said former chief statistician T.C.A Anant.

"The index itself is very good. It's a very modern index. Data collection is done through very modern techniques efficiently," Anant added.

In addition to updating the methodology of calculating retail inflation, the ministry plans to upgrade its data collection process, replacing paper-based surveys with digital tools to enhance accuracy and efficiency.

The ministry aims to publish more granular inflation data, enabling deeper insights into regional and demographic trends.