The Hindu Editorial • January 15, 2026 • Read Original

Moving on: On India’s Consumer Price Index and a new base year

India is getting rid of an outdated dataset for measuring inflation

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The Hindu Read Original

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Analysis of editorial from The Hindu newspaper on January 15, 2026

Moving on: On India’s Consumer Price Index and a new base year

India is getting rid of an outdated dataset for measuring inflation

Consumer Price IndexInflationBase YearIndian EconomyRBIConsumption Patterns

Sentences

Sentence 1 of 21

English Original

The retail inflation figure for December 2025 is the final instalment of the current series of the Consumer Price Index (CPI), with a base year of 2012, before it is updated to a new base year and with new weightages.

Sentence Breakdown

Part 1

The figure for December 2025

The number showing how much prices increased for shoppers in December 2025

Part 2

represents or acts as

Part 3

the final of the current series of the (CPI)

the last part of the current way we measure price changes

Part 4

with a of 2012

using the prices from the year 2012 as a starting point for comparison

Part 5

before it is updated to a new base year and with new

before the system is changed to use a more recent year and new importance levels for different items

Context and Background

Consumer Price Index (CPI) in India

The CPI is the primary measure of inflation in India, used by the RBI for monetary policy. The current series uses 2012 as the base year, meaning today’s prices are compared against 2012 prices to calculate inflation. “Weightages” refer to how much each item (like onions or mobile data) contributes to the total index based on how much people spend on them.

Sentence 2 of 21

English Original

The CPI data this year have been particularly useful in highlighting the problems with relying on a dataset that has not been updated in more than a decade.

Sentence Breakdown

Part 1

The CPI data this year

The inflation information collected during this year

Part 2

have been

has proved to be

Part 3

particularly useful

very helpful

Part 4

in the problems with relying on a that has not been updated in more than a decade

in showing the issues of using information that is more than 10 years old

Sentence 3 of 21

English Original

The inflation figure for December 2025 stood at 1.33%.

Sentence Breakdown

Part 1

The inflation figure for December 2025

The specific number for price increases in December 2025

Part 2

stood

was at the level of

Part 3

at 1.33%

at the rate of 1.33 percent

Sentence 4 of 21

English Original

The fact that it was a three-month high is merely a statistical curiosity since it was also the third lowest since the current series began.

Sentence Breakdown

Part 1

The fact that it was a three-month high

The reality that this number was the highest in the last three months

Part 2

represents

Part 3

merely a

just an interesting but unimportant number

Part 4

since it was also the third lowest since the current began

because it was also one of the lowest numbers recorded since this way of measuring started

Sentence 5 of 21

English Original

Overall, in the April-December 2025 period, inflation has averaged 1.7%, substantially lower than the 4.9% average in the same period of 2024.

Sentence Breakdown

Part 1

Overall, in the April-December 2025 period

Looking at the whole time from April to December 2025

Part 2

inflation

the rate at which prices increased

Part 3

has averaged

has been on average

Part 4

1.7%

at the level of 1.7 percent

Part 5

lower than the 4.9% average in the same period of 2024

much less than the 4.9 percent average during those same months in the previous year

Sentence 6 of 21

English Original

But it does not feel that way.

Sentence Breakdown

Part 1

the situation regarding low inflation

Part 2

does not feel

does not seem to be

Part 3

that way

in the manner described by the official numbers (low and easing)

Sentence 7 of 21

English Original

Anecdotal evidence and hard data show that the inflation that people are really experiencing is far higher than what the official data show.

Sentence Breakdown

Part 1

and

Personal stories and actual statistics

Part 2

show

demonstrate or indicate

Part 3

that the inflation that people are really is far higher than what the official data show

that the price rises people actually face are much more than what the government numbers say

Sentence 8 of 21

English Original

For example, the government’s own first advance estimates for GDP growth this year show that it expects private consumption to grow slower than it did last year.

Sentence Breakdown

Part 1

For example

To give an instance

Part 2

the government’s own first for this year

the government’s first early guesses about how much the economy will grow this year

Part 3

show

indicate or reveal

Part 4

that it expects to grow slower than it did last year

that the government thinks people will spend money on goods and services at a slower rate than they did last year

Context and Background

GDP Advance Estimates

The National Statistical Office (NSO) releases “Advance Estimates” of GDP to help the government plan the upcoming budget. If these estimates show slow growth in private consumption, it suggests that people are either earning less or finding things too expensive to buy, which contradicts the idea of very low inflation.

Sentence 9 of 21

English Original

If inflation had indeed eased to the degree that the official data suggest, surely consumption should have picked up.

Sentence Breakdown

Part 1

If inflation had indeed to the degree that the official data suggest

If price increases had really slowed down as much as the government numbers say

Part 2

surely

definitely or certainly

Part 3

consumption

the buying and using of goods and services by people

Part 4

should have

ought to have increased or improved

Sentence 10 of 21

English Original

According to its latest edition of the Reserve Bank of India’s inflation expectations survey from December, households perceived inflation to be 6.6% — a far cry from the official 1.33% — and felt that it would accelerate to 7.6% in three months and to 8% in a year.

Sentence Breakdown

Part 1

According to its latest edition of the Reserve Bank of India’s from December

Based on the most recent report from the RBI about what people think about inflation

Part 2

households

families or people living in homes

Part 3

perceived

saw or experienced

Part 4

inflation

the rise in prices

Part 5

to be 6.6%

as being at the level of 6.6 percent

Part 6

the official 1.33%

which is very different from the government’s number of 1.33 percent

Part 7

and felt

and believed

Part 8

that it would to 7.6% in three months and to 8% in a year

that price increases would get even faster, reaching 7.6 percent in three months and 8 percent in a year

Context and Background

RBI Inflation Expectations Survey of Households (IESH)

The IESH is a bi-monthly survey that captures subjective assessments of price movements and inflation from households across various cities. There is often a “perception gap” between these survey results and official CPI data because households focus more on frequent purchases like food and fuel, which might be rising faster than the overall index.

Sentence 11 of 21

English Original

The feeling clearly is that not only are prices rising, but they are rising at a faster rate.

Sentence Breakdown

Part 1

The feeling

The general sentiment or belief among people

Part 2

clearly

obviously or without doubt

Part 3

represents or exists as

Part 4

that not only are prices rising, but they are rising at a faster rate

that prices are not just going up, but they are going up more quickly than before

Sentence 12 of 21

English Original

Failing to capture this is where the official data let policymakers down.

Sentence Breakdown

Part 1

Failing to capture this

Not being able to record or show this reality (the public’s feeling of high inflation)

Part 2

represents or results in

Part 3

where the official data let down

the point at which the government numbers fail to help the people who make laws and decisions

Sentence 13 of 21

English Original

The most basic issue with any inflation data is that a single figure is expected to capture the variety of price changes that take place across the country.

Sentence Breakdown

Part 1

The most basic issue with any inflation data

The main problem with any information about price increases

Part 2

represents or exists as

Part 3

that a single figure is expected to the variety of price changes that take place across the country

that one number is supposed to show all the different price changes happening in different parts of India

Sentence 14 of 21

English Original

The national inflation number aggregates price levels and movements from districts in Kashmir to villages in Kerala and everywhere in between, for both urban and rural.

Sentence Breakdown

Part 1

The national inflation number

The single inflation rate for the whole country

Part 2

combines or collects together

Part 3

price levels and movements

the costs of items and how they change

Part 4

from districts in Kashmir to villages in Kerala and everywhere in between

from the northernmost parts of India to the southernmost parts, including all other areas

Part 5

for both urban and rural

for both cities and villages

Sentence 15 of 21

English Original

Naturally it will lose nuances in the process.

Sentence Breakdown

Part 1

Naturally

Of course or as expected

Part 2

the process of combining all the data into one number

Part 3

will lose

will fail to show or miss out on

Part 4

small but important differences

Part 5

in the process

while doing this

Sentence 16 of 21

English Original

Further, while this is the natural peril of computing national statistics for a diverse country such as India, the outdated nature of the CPI makes matters significantly worse.

Sentence Breakdown

Part 1

Further

Additionally or also

Part 2

while this is the natural of computing national statistics for a country such as India

although this is a common danger when calculating numbers for a varied country like India

Part 3

the outdated nature of the CPI

the fact that the Consumer Price Index is old and not updated

Part 4

makes

causes or results in

Part 5

matters

the situation

Part 6

significantly worse

much more serious or bad

Sentence 17 of 21

English Original

The weightages of the various sub-sectors in the index were based on consumption patterns in 2012.

Sentence Breakdown

Part 1

The weightages of the various in the index

The importance given to different categories (like food or fuel) in the inflation list

Part 2

were based

were established or founded

Part 3

on in 2012

on how people spent their money back in the year 2012

Sentence 18 of 21

English Original

People consume very differently now, especially because of various central and State subsidies being offered.

Sentence Breakdown

Part 1

People

The citizens of India

Part 2

consume

buy and use goods and services

Part 3

very differently

in a much different way

Part 4

now

at the present time

Part 5

especially because of various central and State being offered

mainly due to the different financial helps provided by the national and local governments

Sentence 19 of 21

English Original

Thankfully, on February 12, the government will release the January inflation data based on the new series of the CPI.

Sentence Breakdown

Part 1

Thankfully

Fortunately or in a way that brings relief

Part 2

on February 12

on the twelfth day of February

Part 3

the government

the central authorities of India

Part 4

will release

will make public or publish

Part 5

the January inflation data based on the new series of the CPI

the price increase numbers for January using the updated method of measurement

Sentence 20 of 21

English Original

This series will see the base year updated to 2024, and will incorporate new weights based on the Household Consumption Expenditure Survey 2023-24.

Sentence Breakdown

Part 1

This series

The new way of measuring inflation

Part 2

will see

will have or will feature

Part 3

the base year updated to 2024

the starting point for comparison changed to the year 2024

Part 4

and will

and will include or use

Part 5

new weights based on the 2023-24

new importance levels for items based on a recent study of how families spend money

Context and Background

Household Consumption Expenditure Survey (HCES) 2023-24

The HCES is a crucial survey that tracks how much Indian households spend on various goods and services. The data from the 2023-24 survey is being used to update the CPI weights because people’s spending habits have changed significantly since 2012 (e.g., more spending on electronics, health, and education, and less on cereals).

Sentence 21 of 21

English Original

It is an update sorely needed.

Sentence Breakdown

Part 1

The change to the new CPI series

Part 2

represents or acts as

Part 3

an update needed

a change that is very much required

Sentence 1 of 21

Sentences Breakdown

Editorial Summary

5-Point Summary

1 The December 2025 retail inflation data marks the end of the current CPI series based on 2012 consumption patterns.
2 Official data shows low inflation (1.33%), but this contradicts the actual experience of households who perceive much higher price rises.
3 The gap between official data and reality is attributed to an outdated dataset that hasn’t been updated in over a decade.
4 National inflation figures often fail to capture regional nuances and changes in modern consumption habits, such as the impact of subsidies.
5 The government will launch a new CPI series with 2024 as the base year, incorporating updated weights from recent expenditure surveys.

Tone of the Editorial

Analytical

Why this tone?

The editorial objectively examines the limitations of the current CPI series, compares official data with household perceptions, and explains the technical necessity of updating the base year to reflect modern consumption patterns.

Sentence 1 of 21

Sentence Breakdown

Part 1

The retail inflation figure for December 2025

The number showing how much prices increased for shoppers in December 2025

Part 2

represents or acts as

Part 3

the final instalment of the current series of the Consumer Price Index (CPI)

the last part of the current way we measure price changes

Part 4

with a base year of 2012

using the prices from the year 2012 as a starting point for comparison

Part 5

before it is updated to a new base year and with new weightages

before the system is changed to use a more recent year and new importance levels for different items

Sentence 2 of 21

The CPI data this year have been particularly useful in highlighting the problems with relying on a dataset that has not been updated in more than a decade.

Sentence Breakdown

Part 1

The CPI data this year

The inflation information collected during this year

Part 2

have been

has proved to be

Part 3

particularly useful

very helpful

Part 4

in highlighting the problems with relying on a dataset that has not been updated in more than a decade

in showing the issues of using information that is more than 10 years old

Sentence 3 of 21

The inflation figure for December 2025 stood at 1.33%.

Sentence Breakdown

Part 1

The inflation figure for December 2025

The specific number for price increases in December 2025

Part 2

stood

was at the level of

Part 3

at 1.33%

at the rate of 1.33 percent

Sentence 4 of 21

The fact that it was a three-month high is merely a statistical curiosity since it was also the third lowest since the current series began.

Sentence Breakdown

Part 1

The fact that it was a three-month high

The reality that this number was the highest in the last three months

Part 2

represents

Part 3

merely a statistical curiosity

just an interesting but unimportant number

Part 4

since it was also the third lowest since the current series began

because it was also one of the lowest numbers recorded since this way of measuring started

Sentence 5 of 21

Overall, in the April-December 2025 period, inflation has averaged 1.7%, substantially lower than the 4.9% average in the same period of 2024.

Sentence Breakdown

Part 1

Overall, in the April-December 2025 period

Looking at the whole time from April to December 2025

Part 2

inflation

the rate at which prices increased

Part 3

has averaged

has been on average

Part 4

1.7%

at the level of 1.7 percent

Part 5

substantially lower than the 4.9% average in the same period of 2024

much less than the 4.9 percent average during those same months in the previous year

Sentence 6 of 21

But it does not feel that way.

Sentence Breakdown

Part 1

the situation regarding low inflation

Part 2

does not feel

does not seem to be

Part 3

that way

in the manner described by the official numbers (low and easing)

Sentence 7 of 21

Anecdotal evidence and hard data show that the inflation that people are really experiencing is far higher than what the official data show.

Sentence Breakdown

Part 1

Anecdotal evidence and hard data

Personal stories and actual statistics

Part 2

show

demonstrate or indicate

Part 3

that the inflation that people are really experiencing is far higher than what the official data show

that the price rises people actually face are much more than what the government numbers say

Sentence 8 of 21

For example, the government’s own first advance estimates for GDP growth this year show that it expects private consumption to grow slower than it did last year.

Sentence Breakdown

Part 1

For example

To give an instance

Part 2

the government’s own first advance estimates for GDP growth this year

the government’s first early guesses about how much the economy will grow this year

Part 3

show

indicate or reveal

Part 4

that it expects private consumption to grow slower than it did last year

that the government thinks people will spend money on goods and services at a slower rate than they did last year

Sentence 9 of 21

If inflation had indeed eased to the degree that the official data suggest, surely consumption should have picked up.

Sentence Breakdown

Part 1

If inflation had indeed eased to the degree that the official data suggest

If price increases had really slowed down as much as the government numbers say

Part 2

surely

definitely or certainly

Part 3

consumption

the buying and using of goods and services by people

Part 4

should have picked up

ought to have increased or improved

Sentence 10 of 21

Sentence Breakdown

Part 1

According to its latest edition of the Reserve Bank of India’s inflation expectations survey from December

Based on the most recent report from the RBI about what people think about inflation

Part 2

households

families or people living in homes

Part 3

perceived

saw or experienced

Part 4

inflation

the rise in prices

Part 5

to be 6.6%

as being at the level of 6.6 percent

Part 6

a far cry from the official 1.33%

which is very different from the government’s number of 1.33 percent

Part 7

and felt

and believed

Part 8

that it would accelerate to 7.6% in three months and to 8% in a year

that price increases would get even faster, reaching 7.6 percent in three months and 8 percent in a year

Sentence 11 of 21

The feeling clearly is that not only are prices rising, but they are rising at a faster rate.

Sentence Breakdown

Part 1

The feeling

The general sentiment or belief among people

Part 2

clearly

obviously or without doubt

Part 3

represents or exists as

Part 4

that not only are prices rising, but they are rising at a faster rate

that prices are not just going up, but they are going up more quickly than before

Sentence 12 of 21

Failing to capture this is where the official data let policymakers down.

Sentence Breakdown

Part 1

Failing to capture this

Not being able to record or show this reality (the public’s feeling of high inflation)

Part 2

represents or results in

Part 3

where the official data let policymakers down

the point at which the government numbers fail to help the people who make laws and decisions

Sentence 13 of 21

The most basic issue with any inflation data is that a single figure is expected to capture the variety of price changes that take place across the country.

Sentence Breakdown

Part 1

The most basic issue with any inflation data

The main problem with any information about price increases

Part 2

represents or exists as

Part 3

that a single figure is expected to capture the variety of price changes that take place across the country

that one number is supposed to show all the different price changes happening in different parts of India

Sentence 14 of 21

The national inflation number aggregates price levels and movements from districts in Kashmir to villages in Kerala and everywhere in between, for both urban and rural.

Sentence Breakdown

Part 1

The national inflation number

The single inflation rate for the whole country

Part 2

aggregates

combines or collects together

Part 3

price levels and movements

the costs of items and how they change

Part 4

from districts in Kashmir to villages in Kerala and everywhere in between

from the northernmost parts of India to the southernmost parts, including all other areas

Part 5

for both urban and rural

for both cities and villages

Sentence 15 of 21

Naturally it will lose nuances in the process.

Sentence Breakdown

Part 1

Naturally

Of course or as expected

Part 2

the process of combining all the data into one number

Part 3

will lose

will fail to show or miss out on

Part 4

nuances

small but important differences

Part 5

in the process

while doing this

Sentence 16 of 21

Further, while this is the natural peril of computing national statistics for a diverse country such as India, the outdated nature of the CPI makes matters significantly worse.

Sentence Breakdown

Part 1

Further

Additionally or also

Part 2

while this is the natural peril of computing national statistics for a diverse country such as India

although this is a common danger when calculating numbers for a varied country like India

Part 3

the outdated nature of the CPI

the fact that the Consumer Price Index is old and not updated

Part 4

makes

causes or results in

Part 5

matters

the situation

Part 6

significantly worse

much more serious or bad

Sentence 17 of 21

The weightages of the various sub-sectors in the index were based on consumption patterns in 2012.

Sentence Breakdown

Part 1

The weightages of the various sub-sectors in the index

The importance given to different categories (like food or fuel) in the inflation list

Part 2

were based

were established or founded

Part 3

on consumption patterns in 2012

on how people spent their money back in the year 2012

Sentence 18 of 21

People consume very differently now, especially because of various central and State subsidies being offered.

Sentence Breakdown

Part 1

People

The citizens of India

Part 2

consume

buy and use goods and services

Part 3

very differently

in a much different way

Part 4

now

at the present time

Part 5

especially because of various central and State subsidies being offered

mainly due to the different financial helps provided by the national and local governments

Sentence 19 of 21

Thankfully, on February 12, the government will release the January inflation data based on the new series of the CPI.

Sentence Breakdown

Part 1

Thankfully

Fortunately or in a way that brings relief

Part 2

on February 12

on the twelfth day of February

Part 3

the government

the central authorities of India

Part 4

will release

will make public or publish

Part 5

the January inflation data based on the new series of the CPI

the price increase numbers for January using the updated method of measurement

Sentence 20 of 21

This series will see the base year updated to 2024, and will incorporate new weights based on the Household Consumption Expenditure Survey 2023-24.

Sentence Breakdown

Part 1

This series

The new way of measuring inflation

Part 2

will see

will have or will feature

Part 3

the base year updated to 2024

the starting point for comparison changed to the year 2024

Part 4

and will incorporate

and will include or use

Part 5

new weights based on the Household Consumption Expenditure Survey 2023-24

new importance levels for items based on a recent study of how families spend money

Sentence 21 of 21

It is an update sorely needed.

Sentence Breakdown

Part 1

The change to the new CPI series

Part 2

represents or acts as

Part 3

an update sorely needed

a change that is very much required

Reading Comprehension

Practice questions based on this editorial

Reading Comprehension - India's Consumer Price Index

Practice reading comprehension questions based on the editorial about India's decision to update the Consumer Price Index (CPI) base year.

5 Questions Passing: 70%

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