India’s inflation measurement framework is entering a new phase. With the release of December 2025 data, the long-running CPI series based on 2012 has officially concluded. From next month, a new Consumer Price Index series with 2024 as the base year will come into effect, aiming to better reflect current consumption trends and economic realities.
Why in the News?
The National Statistical Office released the final CPI inflation data under the 2012 base year. From next month, a new CPI series with 2024 as the base year will be launched.
Inflation Trends Under the 2012 Base
- An analysis of the 2012-base CPI series shows that headline inflation peaked at 11.16% in November 2013, reflecting a period of high price pressures.
- Over the years, inflation gradually moderated, reaching a historic low of 0.25% in October 2025.
- This long-term easing highlights improved macroeconomic management, better supply responses, and more effective monetary policy transmission.
Rural and Urban Inflation Patterns
- During high-inflation years, rural inflation remained higher than urban inflation, largely due to food price pressures.
- However, this trend reversed in 2025, when urban CPI consistently exceeded rural CPI.
- Rising housing costs, services inflation, and lifestyle-related expenses contributed to higher urban inflation in recent years.
Food, Core, and Fuel Inflation
- CPI-food inflation showed sharp volatility under the 2012 series. It peaked at 16.12% in April 2018, while the lowest reading was recorded in April 2019.
- Core inflation reached a high of 9.41% in 2012-13 before easing to 3.55% in 2024–25, indicating reduced underlying price pressures.
- Fuel and light inflation peaked at 11.25% in 2021–22, reflecting global energy shocks.
What is CPI and Base Year Change
- The Consumer Price Index (CPI) measures changes in prices of a fixed basket of goods and services consumed by households.
- Periodic base year revisions are essential to reflect evolving consumption patterns, new products, and changes in expenditure shares.
- Updating the base year improves the accuracy and relevance of inflation measurement for policy decisions.
Key Summary at a Glance
| Aspect | Details |
| Why in News? | End of CPI 2012 base series |
| Statistical Agency | National Statistical Office |
| Old Base Year | 2012 |
| New Base Year | 2024 |
| Peak Headline Inflation | 11.16% (Nov 2013) |
| Lowest Inflation | 0.25% (Oct 2025) |
| Food Inflation Peak | 16.12% (Apr 2018) |
| Core Inflation | Trend Fell to 3.55% in 2024–25 |
Question
Q. From which year will the new CPI base year series in India begin?
A. 2022
B. 2023
C. 2024
D. 2025
ShivamAs a Content Executive Writer at Adda247, I am dedicated to helping students stay ahead in their competitive exam preparation by providing clear, engaging, and insightful coverage of both major and minor current affairs. With a keen focus on trends and developments that can be crucial for exams, researches and presents daily news in a way that equips aspirants with the knowledge and confidence they need to excel. Through well-crafted content, Its my duty to ensures that learners remain informed, prepared, and ready to tackle any current affairs-related questions in their exams.