The new CPI basket shows households now spend less on food and more on services and modern items

GK and monthly revision
From roti to OTT: New inflation math tells story of new India
The Indian government has updated the Consumer Price Index (CPI) basket to reflect the changing spending patterns of households. The new CPI basket shows that Indians are now spending less on food and more on services and modern items, indicating a growing economy and changing lifestyles. This revision captures the shift in how Indians are spending compared to a decade ago, and the Reserve Bank of India's inflation target band has been met.
Revision structure
Key points
Exam-ready takeaways
This shift reflects a growing economy and changing lifestyles in India
The Reserve Bank of India's inflation target band has been met with this revision
The new CPI basket captures how Indians are spending differently today compared to a decade ago
The CPI basket is updated to reflect the changing spending patterns of Indian households
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