There is relief news for the common man at the beginning of the new year. The retail inflation rate in January 2026 has been recorded at 2.75%. These figures are special because the government has changed the scale of measuring inflation i.e. ‘base year’. Now instead of 2012, inflation figures have been released considering the year 2024 as the base.
Now the impact of inflation on your pocket will be measured in a new way
The Ministry of Statistics and Program Implementation has made a major change in the Consumer Price Index (CPI). The government says that the way people spend has completely changed in the last decade, so it was necessary to update the old scale. The structure of the new index is based on the ‘Household Consumption Expenditure Survey 2023-24’.
VCR out of inflation basket, pen drive and OTT in
Major changes have been made in the ‘basket of goods’ on the basis of which inflation is calculated.
- What happened outside: VCRs, VCD/DVD players, radios, tape recorders, old clothes and cassettes have been excluded as they are of little use now.
- what was involved: Now online media and streaming service (OTT), pen drive, external hard disk, babysitter (nayya), exercise equipment and rural accommodation have been added to the list of inflation. This change reflects the digital world and changing lifestyle.
Inflation is slightly lower in villages than in cities. According to the new data, inflation seems to be under control:
- Total inflation: 2.75%
- Rural inflation: 2.73%
- Urban Inflation: 2.77%
- Food Inflation: The inflation rate of food items at the national level was 2.13%.
- Housing: Housing inflation was recorded at 2.05%.
What will be the effect?
Changing base year does not just mean technical change. In this, the ‘weightage’ (importance) of different categories has been changed. Experts believe that the new base year (2024) will provide more accurate data to policy makers and RBI, which will make it easier to take economic decisions in future.
