India Consumer Price Index (CPI)

Retail inflation returns to RBI's upper target band of 6% in March.

Published monthly by the Ministry of Statistics and Programme Implementation (MOSPI). Updated till April 2020 (Published on May 13th, 2020).

Note: The seasonally adjusted series has been obtained using the Census X-13 procedure with the X-11 method of seasonal adjustment.

Note: The core CPI excludes food and fuel group from the headline CPI. The effective core CPI excludes pan tobacco & intoxicants and housing from core CPI.

Note: CPI-Services includes health, education, personal care, recreation, and amusement services. CPI-Goods is CPI excl. CPI services.

Recent Data Trend

India's consumer price index or retail inflation continued to ease and reached to a four-month low of 5.9% YoY in March 2020 amid coronavirus-induced nationwide lockdown. With this, the CPI thus entered the RBI's upper target band of 6%. Lower food prices primarily led the fall in overall inflation, especially a continued drop in vegetable prices.

Inflation in food and beverages eased to 7.8% YoY in March from 9.5% YoY in the previous month. The inflation in vegetables fell to 18.6% YoY from 31.6% YoY in the last month. While global crude oil prices have fallen to record low due to COVID-19 induced demand shock, inflation in fuel & light marginally increased to 6.5% YoY in March as against 6.4% YoY in the last month. It is expected to ease in the coming months, depending on the level of pass-through to retail consumers.

The continued fall in inflation is in agreement with RBI's outlook of the same. A fall in retail inflation for the first time in seven months in February and an expectation of further easing up prompted RBI to cut policy rates by 75 bps in an emergency move on March 27, 2020.

With falling crude oil prices, lower food prices, and weaker consumer demand for non-essential products due to the spread of COVID-19, we expect moderation in CPI to continue in the coming months. However, the inflation trajectory will also be influenced by COVID-19 related supply disruptions. Even the current data is subject to revision on account of missing CPI data as Statistics Ministry reported that data collection agencies faced difficulties owing to nationwide lockdown.

Brief Overview

Consumer Price Index in India is published monthly by the Central Statistical Organization (CSO). Consumer Price Indices (CPI) measure changes over time in the general level of prices of goods and services that households acquire for consumption. CPI is a macroeconomic indicator of inflation and used as a tool by central banks for inflation targeting and monitoring price stability, and as deflators in the national accounts. CPI is also used for indexing dearness allowance to employees for the increase in prices.

The data we present above is in the base year 2012. The Field Operations Division of NSSO, the specified State/UT Directorates of Economics and Statistics and 1181 selected villages of the Department of Posts collect monthly price data from 1114 markets in 310 chosen towns.

For more information, please visit the official government website. Archive

CPI- Sub groups

CPI- Quarterly

Note: The seasonally adjusted series has been obtained using the Census X-13 procedure with the X-11 method of seasonal adjustment

Consumer Price Index (CPI)- Industrial Workers