Online Prices in 12 Cities to Shape New CPI Series

Fast Summary:

• Online prices in 12 Indian cities will be monitored to introduce a new Consumer Price Index (CPI) series.
• The initiative aims to enhance the accuracy of CPI inflation measurement by incorporating e-commerce data alongside customary market surveys.
• The monitored cities include metro areas like Delhi, Mumbai, and Bangalore, along with tier-two cities.

Indian Opinion Analysis:
India’s decision to leverage online price monitoring for its upcoming CPI series reflects an adaptive response to the digital transformation of commerce. By integrating e-commerce data into inflation calculations, policymakers aim for a more representative measure of consumer trends amidst evolving shopping habits. This development is important as it could improve macroeconomic policy precision while reflecting urban realities and rural disparities more effectively in India’s diverse economic landscape.

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