India Unveils New CPI Series with 2024 Base; January Inflation at 2.75%

• India introduced a new Consumer Price Index (CPI) series with a 2024 base, reporting January inflation at 2.75%.
• The new series expands coverage to 358 items, collects data from more markets, and realigns weightages to reflect current spending patterns.
• Food and beverages weight reduced to 36.75% from 45.86%, potentially lowering headline volatility; housing weight increased to 17.67%.
• The Reserve Bank of India (RBI) will use this improved data for monetary policy decisions, aiming to keep retail inflation at 4% (+/- 2%).
• Chief Economic Advisor V Anantha Nageswaran stated the new series provides a more up-to-date basis for assessing real incomes and consumption trends.