India to Update Consumer Price Index Base Year Amid Inflation Measurement Changes

India is set to update its Consumer Price Index (CPI) base year from 2012 to 2024 in February, introducing new weightages and improved data collection methods. The current CPI series showed a December 2025 inflation rate of around 1.3%, with core inflation rising due to factors like precious metal prices. However, household inflation expectations remain significantly higher, indicating a gap between official data and public perception. Analysts, including Nomura, anticipate inflation to gradually increase following the transition to the new CPI series.