Consumer Price Index (CPI)

Higher CPI amidst low growth rate to put RBI's MPC in a dilemma.

Published monthly by the Ministry of Statistics and Programme Implementation (MOSPI). Updated till December 2019 (Published on January 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 for December 2019 grew by 7.2% YoY, driven by high food price, breaching the RBI's upper tolerance limit of 6%.The growth rate in core CPI (ex-food & fuel) has moderately increased to 3.7% YoY from 3.6% YoY in October 2019.

Among the food products, the price rise is majorly in vegetables, pulses, and dairy products both in rural and urban India.

There is not much respite in the seasonally adjusted CPI either, as the index has been accelerating since January 2019. Even if the food prices shock subsides in the coming months, the oil shocks due to uncertain geopolitical risks in the middle east would add to uncertainty in inflation.

Thus, the rising food prices led by the supply shortfalls in various sectors, as witnessed in slowdown in major economic indicators in the last few months, is likely to leave the RBI's MPC in a dilemma in its upcoming policy meeting in February.

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

CPI- Industrial Workers

CPI- Annual

Next Release Date: February 12, 2020