AirPods, Pet Food, Sanitizers Enter India's Updated CPI Basket

• India's revised Consumer Price Index (CPI) basket now includes AirPods, pet food, sanitizers, fitness bands, and air purifiers, reflecting evolving consumption patterns.
• The updated basket, to be released on February 12, increases weighted items from 299 to 358, covering more services, technology, and personal care.
• Inclusions like pet food and sanitizers highlight urbanization, disposable income growth, and post-pandemic hygiene shifts.
• The new CPI series uses 2024 as the base year, aligns with COICOP 2018, and incorporates online data sources for items like air travel and OTT subscriptions.
• Food's weight in the CPI will drop below 40% for the first time, while non-food categories like housing, health, and transport see increased prominence.

Why It Matters: India's CPI update reflects modern consumption, with new items and a rebalanced weight towards non-food categories.