On 29 July 2026, the Ministry of Statistics & Programme Implementation (MoSPI) detailed India's revised Consumer Price Index (CPI) series — with the base year updated from 2012=100 to 2024=100 (released February 2026). Price collection now covers 1,465 rural and 1,395 urban markets across 434 towns, plus 12 online markets to capture e-commerce prices for the first time. For a CDS/OTA aspirant, the CPI and inflation are among the most reliably examined economy topics.
The news in one frame
The essentials:
- What: the CPI base year revised from 2012=100 to 2024=100 (new series released Feb 2026).
- Coverage: 1,465 rural + 1,395 urban markets across 434 towns.
- New: 12 online markets added to capture e-commerce/online price trends.
- Who: the National Statistical Office (NSO) under MoSPI.
What is the CPI?
Start with the concept. The Consumer Price Index (CPI) measures the average change in the retail prices of a basket of goods and services that households typically buy — so it measures the inflation people actually experience. Key features:
- It covers both goods and services — food and beverages, fuel and light, housing, clothing, transport, health, education and recreation.
- It is compiled monthly by the NSO (MoSPI) in three forms: CPI-Rural, CPI-Urban and CPI-Combined.
- Food and beverages carry the largest weight in the Indian CPI basket — which is why food-price shocks (vegetables, pulses) swing headline inflation.
- Core inflation = CPI inflation excluding food and fuel (the volatile items) — showing the underlying trend.
This is exactly what the CDS/OTA notes on inflation unpack.
Why revise the base year?
The examinable logic of rebasing — the heart of the news:
- An index compares today's prices with a base year (=100). Over time, consumption patterns change — people spend on new things (mobile data, e-commerce, health) and less on others.
- If the basket and weights stay frozen in an old year (2012), the index stops reflecting reality.
- So the base year is periodically updated — here from 2012 to 2024 — with a fresh basket, new weights (drawn from a consumption survey) and wider market coverage.
- Adding online markets is a first — recognising that a growing share of shopping happens on e-commerce platforms.
A rebased index gives a more accurate measure of inflation, which matters because so much depends on it. These themes recur in the CDS/OTA daily current affairs.
CPI vs WPI — and why CPI rules policy
The most-tested contrast:
| Feature | CPI | WPI |
|---|---|---|
| Stage | Retail (consumer) | Wholesale (business-to-business) |
| Basket | Goods + services | Goods only |
| Compiled by | NSO, MoSPI | Office of the Economic Adviser, DPIIT |
| New base year | 2024 = 100 | 2022-23 |
| Policy use | The RBI's inflation target | Producer-side trends |
The crucial point: under flexible inflation targeting (adopted 2016, via the amended RBI Act), the RBI's target is 4% CPI inflation with a ±2% band — set by the government in consultation with the RBI, and pursued by the Monetary Policy Committee (MPC) using the repo rate. The revision hook: CPI = retail inflation (goods + services), by NSO/MoSPI, base now 2024=100 (from 2012), 1,465 rural + 1,395 urban markets + 12 online; food has the largest weight; core inflation excludes food & fuel; RBI targets CPI at 4% ±2% (since 2016) via the MPC; WPI = wholesale goods only (DPIIT, base 2022-23).
Why inflation measurement matters
Round out with the stakes:
- Monetary policy: the MPC raises or cuts the repo rate based on CPI inflation — affecting loan EMIs and growth.
- Wages and pensions: Dearness Allowance and many contracts are linked to price indices (the CPI-IW, compiled by the Labour Bureau, is used for DA).
- Real vs nominal: inflation converts nominal income into real (purchasing-power) terms — vital for measuring true growth.
- Types of inflation: demand-pull (too much demand) vs cost-push (rising input costs); deflation is falling prices, and stagflation is high inflation with stagnant growth.
Why it matters
For the essay/interview and bigger picture:
- Accuracy = better policy: a modern basket means the RBI and government act on real price trends.
- Household impact: inflation hits the poor hardest (food is a bigger share of their spending), so measuring it well is a welfare issue.
- Credibility: updated, transparent statistics strengthen confidence in India's data system.
Exam relevance in one paragraph
For CDS/OTA GK, retain: the Consumer Price Index (CPI) measures retail inflation across both goods and services, compiled monthly by the National Statistical Office (MoSPI) as CPI-Rural, CPI-Urban and CPI-Combined, with food and beverages carrying the largest weight (core inflation excludes food and fuel); its base year has been revised from 2012=100 to 2024=100 (new series released February 2026) with price collection from 1,465 rural and 1,395 urban markets across 434 towns plus 12 online markets for e-commerce; base years are revised because consumption patterns change; under flexible inflation targeting (2016, amended RBI Act) the RBI's Monetary Policy Committee targets 4% CPI inflation with a ±2% band using the repo rate — the target is on CPI, not the WPI (which covers wholesale goods only, compiled by DPIIT with base 2022-23). For the essay, frame it as modernising the measure of the inflation people feel.
🎯 Practice MCQs
Q1. The CPI measures inflation at the ___ level. (a) retail (b) wholesale (c) export (d) factory-gate only → (a) — retail (consumer) prices.
Q2. The CPI's new base year is: (a) 2024 = 100 (b) 2012 = 100 (c) 2011-12 (d) 2004-05 → (a) — 2024 = 100.
Q3. The CPI is compiled by: (a) NSO under MoSPI (b) RBI (c) DPIIT (d) SEBI → (a) — the National Statistical Office.
Q4. The RBI's inflation target is based on: (a) CPI (b) WPI (c) GDP deflator (d) IIP → (a) — the CPI (Combined).
Q5. The RBI's inflation target is: (a) 4% ± 2% (b) 10% (c) 0% (d) 2% ± 4% → (a) — 4% with a ±2% band.
Q6. Flexible inflation targeting was formally adopted in: (a) 2016 (b) 1991 (c) 2000 (d) 2020 → (a) — 2016 (amended RBI Act).
Q7. Which body decides the policy repo rate? (a) the Monetary Policy Committee (b) SEBI (c) NITI Aayog (d) the Finance Commission → (a) — the MPC.
Q8. Which item group has the largest weight in India's CPI? (a) food and beverages (b) clothing (c) recreation (d) education → (a) — food and beverages.
Q9. "Core inflation" excludes: (a) food and fuel (b) housing (c) clothing (d) services → (a) — the volatile food and fuel components.
Q10. Unlike the CPI, the WPI covers: (a) goods only (b) services only (c) both equally (d) imports only → (a) — goods only.
Q11. The WPI is compiled by the: (a) Office of the Economic Adviser, DPIIT (b) NSO (c) RBI (d) Labour Bureau → (a) — DPIIT's Office of the Economic Adviser.
Q12. Base years are revised mainly because: (a) consumption patterns change over time (b) prices never change (c) of court orders (d) of elections → (a) — to reflect current consumption.
Q13. A new feature of the revised CPI series is the inclusion of: (a) online (e-commerce) markets (b) foreign markets (c) only villages (d) stock prices → (a) — online market price collection.
Q14. Inflation caused by rising input costs is called: (a) cost-push inflation (b) demand-pull inflation (c) deflation (d) stagflation → (a) — cost-push inflation.
Q15. The index used to calculate Dearness Allowance is the: (a) CPI-IW (Labour Bureau) (b) WPI (c) Sensex (d) IIP → (a) — CPI for Industrial Workers.
Q16. The number of markets in the new CPI series includes about how many rural markets? (a) 1,465 (b) 100 (c) 10,000 (d) 50 → (a) — 1,465 rural markets (plus 1,395 urban).
Q17. High inflation with stagnant growth is called: (a) stagflation (b) deflation (c) disinflation (d) reflation → (a) — stagflation.
Q18. A sustained fall in the general price level is: (a) deflation (b) inflation (c) stagflation (d) devaluation → (a) — deflation.
Q19. The MPC has how many members (including RBI and external experts)? (a) six (b) two (c) twelve (d) twenty → (a) — six (three RBI + three external).
📋 How this gets asked (PYQ pattern)
Price indices are a high-frequency CDS/OTA economy set. The reliable framings are CPI vs WPI (retail vs wholesale; goods+services vs goods), who compiles which, the RBI's 4%±2% CPI target and the MPC, and core inflation. A common trap says the RBI targets the WPI, or swaps the compiling agencies. The fresh 2026 hook is the CPI rebasing to 2024=100 with online markets — ideal for "which index / which base / which body" items. We reference the pattern, not any exact past question.
Preparing for CDS or OTA? Inflation, price indices and monetary policy are high-yield economy topics and strong essay material. Follow our daily CDS/OTA current affairs and train with serving-officer faculty in the upcoming Cavalier courses in Delhi.
✍️ Written by Aditya Tiwari — Economy & current-affairs faculty at The Cavalier. Reviewed by the Cavalier Faculty Desk. The Cavalier, founded by ex-Army officers, has trained NDA/CDS/SSB aspirants since 2001 (Facebook · YouTube).
Source: PIB / MoSPI, 29 July 2026. Facts cross-verified with independent sources.