New CPI Series: Food Weightage Drops, Kerala Faces Higher Inflation Risk

• India's new CPI series, releasing Feb 12, likely shows food weightage around 37%, down from 46% due to rising incomes and spending shifts.
• Cooked food and snacks moved from 'Food' to 'Restaurant and Cafe Services' category, impacting direct comparison and official food weightage.
• If restaurant-related food is re-added, effective food weightage is 40%, indicating a less significant decline than headline figures suggest.
• Lower food weightage means less direct impact of food price surges on headline inflation; services inflation may rise indirectly.
• Kerala may see higher inflation due to a larger share of non-food items, services, gold, and coconut in its consumption basket.