SBI: New CPI Weights to Marginally Increase Inflation by 20-30 BPS; Food Share Falls Below 40%

• SBI report indicates new CPI weights will lead to a marginal 20-30 basis points increase in average inflation.
• Food and beverages weight in the new CPI series will significantly drop to 36.75% from 45.86%.
• Weights for transport, information, communication, recreation, and culture categories will increase.
• The new CPI (2024=100) will include 358 items, up from 299, and adopt COICOP 2018 classification.
• Price collection will expand to online platforms, e-commerce, and systematically capture services like OTT subscriptions.

Why It Matters: New CPI weights will cause a slight inflation rise, reduce food's share, and broaden item coverage.