New CPI Series: Food Weight Drops, Rural Share Rises to 55%

• India's new Consumer Price Index (CPI) series, to be released on February 12, will significantly alter inflation measurement.
• The weight of food and beverages in the CPI will drop sharply to 36.8% from 45.9%, reflecting evolving consumption patterns.
• Rural India's share in the CPI is set to increase to 55.4% from 53.52%, indicating its growing influence on national inflation trends.
• Non-food categories like housing, transport, and health services have gained weight, while education and clothing have seen a decline.
• The 'miscellaneous' group, covering non-food items and services, expands to 36.2%, aiming to make headline inflation less volatile.

Why It Matters: New CPI series reduces food's weight, increases rural share, and emphasizes non-food spending for less volatile inflation.