India Consumer Price Index (CPI)

Rise in core CPI further adds to inflationary pressure in the Indian economy.

Published monthly by the Ministry of Statistics and Programme Implementation (MOSPI). Updated till January 2020 (Published on February 12th, 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 continues to rise as it grew by 7.5% YoY in January 2020, breaching the RBIs upper tolerance limit for the second consecutive month. Surge in fuel prices in January 2020 due to geopolitical disturbance in the middle east led to a rise in CPI in January 2020.The rising food prices, which caused a continual rise in India's inflation since March 2019, narrowed moderately in January 2020. But the price index of vegetables,though its' growth rate narrowed to 50% YoY, and pulses remain a cause of concern.

The movement in the growth rate of core CPI has been moderate in the last few months, but the continual rise in the same for the second consecutive month in January 2020 adds to the existing inflationary pressure in the Indian economy. The rise in core CPI means the prices of commodities apart from food and fuel also increased in the last month. It can be witnessed in an uptick in prices of tobacco, clothes&footwear, etc. Also, the price index for services grew by 4.8% YoY in January 2020 after rebounding from a negative growth rate of -1.1% YoY in December 2019.

Weaker economic growth amidst high inflation prompted RBI to pause the rate cut in its recent MPC meeting. In our view, the RBI would continue to keep the repo rate unchanged as long as CPI remains above its tolerance limit of 6%.

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