India Consumer Price Index (CPI)

India's retail inflation remains above the MPC's target in June, paving way for further RBI action.

Published monthly by the Ministry of Statistics and Programme Implementation (MOSPI). Updated till June 2020 (Published on July 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 CPI inflation stood at 6.09% year-on-year (YoY%), in June 2020. On account of the non-availability of data for several sub-groups in May and April, the statistical office used an imputation methodology recommended in the Business continuity guidelines to calculate the consumer price index. The revised CPI inflation rose to 7.44% YoY in April from 5.9% YoY in March.

Since April 2020, higher prices of food articles have contributed to the elevated inflation. But the food prices as measured by the consumer food price index eased to 7.8% YoY in June compared to 9.3% YoY in May 2020. Among the food categories, the meat and fish segment prices stood at 16.2% YoY, pulses at 16.6% YoY and spices at 11.7% YoY in June 2020. Besides, housing inflation stood at 3.5% YoY marginally lower than 3.6% YoY in May 2020.

Retail inflation at over 6.09% YoY remains just above the RBI's monetary policy committee's (MPC) tolerance band of 4(+/- 2) %. Given that June's inflation print is higher than what it was in March and demand conditions continue to remain weak, the MPC must continue to cut rates. Further rate cuts will also support the sentiments of people and assist in transmission.

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. 

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

CPI- Annual

Next Release Date: August 12, 2020