The move is designed to make the Consumer Price Index more representative of shifting consumption habits.
India is reportedly planning to revamp its method of measuring retail inflation by obtaining price data directly from e-commerce giants such as Amazon and Flipkart.
The Ministry of Statistics and Programme Implementation has begun scraping prices from online platforms in 12 major cities and is holding discussions with companies to access data more systematically, according to a report by Reuters.
The move is designed to make the Consumer Price Index (CPI) more representative of shifting consumption habits. India already has around 270 million online shoppers in 2024, a figure expected to grow at an annual rate of 22%, underscoring the importance of incorporating digital consumption patterns.
According to statistics secretary Saurabh Garg, e-commerce companies will be asked to provide weekly average prices of goods, which will then be verified against broader datasets to ensure accuracy.
Upcoming Changes
The revised CPI basket will also include new categories such as airfares and streaming services, reflecting the growing role of digital services in household budgets. The updated CPI series is scheduled for release early next year.
This overhaul is part of a broader upgrade of India’s statistical system. Alongside the new CPI, the government is working on a revised GDP series with a base year of 2022-23, more frequent employment reports, and a forthcoming Index of Services Production (ISP) to better capture activity in the services sector, which contributes over half of India’s GDP.
Garg noted that the expansion of household surveys and alignment with global standards will help ensure more robust, timely, and credible economic indicators for policymaking.
July Inflation Slows
Earlier this month, India posted its annual retail inflation data, which slowed to 1.55% in July from 2.1% in June, the lowest in eight years. It was led by a steep drop in food prices. Food inflation came in at -1.76%, lower than -1.01% in June, the lowest in six years.
On August 6, RBI held key lending rates steady, with repo rates at 5.50%, after three rate reductions in the previous policy meetings. Policy stance was maintained at ‘neutral’.
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