Mumbai : In its latest research report (Issue #43, FY26), SBI Research highlights that the newly introduced Consumer Price Index (CPI) 2024 series is a "veritable storehouse" for data-based policy signals. The report underscores that the new series, which adopts the global COICOP 2018 (Classification of Individual Consumption According to Purpose) framework, will significantly enhance the credibility and comparability of Indian inflation data on a global stage.
Key highlights from the SBI Research report include:
Structural Shift in Weights: Under the 2024 series, the weight of 'Food and Beverages' has declined to 36.75%. Interestingly, the report notes that had the old 2012 classification been followed, this weight would have only dropped to 40.10%, indicating a more modern consumption basket in the new series.
Concentrated Impact: The new CPI reveals that 90% of the index weight is now covered by just 148 items, despite the basket containing 358 items. This concentration is expected to help in more accurate inflation "nowcasting" and better corporate pricing strategies.
Regional Dynamics: The report points out significant weight reductions for industrialized states like Maharashtra and West Bengal. It also highlights "two-panel" stories in states like Sikkim, where rural and urban inflation sensitivities diverge sharply, especially in housing and food categories.
Policy Implications: The series will serve as a critical tool for scenario analysis (such as rent or fuel shocks) and mapping the changing patterns of urbanization across India.
Dr. Soumya Kanti Ghosh, Group Chief Economic Adviser, SBI, stated that the new series reflects the transformative impact of decadal people-oriented policies, anchoring the milestones of 'Viksit Bharat' across both rural and urban landscapes.