Govt to Track Online Shopping in 12 Cities: Major Overhaul in Inflation Calculation (CPI) Planned

The Indian government has announced a big change in how the Consumer Price Index (CPI) is calculated. Going beyond traditional brick-and-mortar market data, the government will now begin tracking online shopping prices and patterns in 12 major cities.

Why Are The Changes Taking Place?

As online shopping and quick-commerce platforms grow, the government recognises that inflation metrics must capture this shift. Currently, CPI relies heavily on traditional retail data, missing out on online trends. Including online prices will ensure that CPI reflects real-world spending. Urban households spend about 11% of their purchases online, compared to 3.6% in rural areas, as per Economic Times.

What is the new CPI plan?

As per a report from Moneycontrol, the government will monitor online shopping trends in 12 key Indian cities. Additionally, e-commerce platforms like Blinkit, Zepto, BigBasket, Amazon, Flipkart, and others will be sources of real-time data for product pricing and consumer behaviour.

This data will be used to enhance the CPI inflation basket, making it more reflective of current consumption habits as per a report from Moneycontrol.

Which Cities Will Be Covered Under The New CPI Framework?

The following cities have been shortlisted based on population (over 2.5 million) and penetration of online shopping, which include Delhi, Mumbai, Bengaluru, Chennai, Kolkata, Hyderabad, Ahmedabad, Pune, Jaipur, Lucknow, Chandigarh, and Guwahati.

How Will It Work?

Data Scraping from Online Platforms: Prices of groceries, mobile recharges, OTT subscriptions, cab fares, and more will be tracked from online sources.

Privacy Protected: No personal or payment details will be collected, only anonymised price and category-level data.

New Items in the Basket: Online-exclusive services and products like flight bookings, streaming subscriptions, and digital groceries will be added to the CPI scope.

When Will This Roll Out?

The new CPI index with online data integration is likely to be released in the first quarter of FY26 (April-June 2025). Additionally, the base year for CPI will be revised from 2011-12 to 2024, the Moneycontrol report further stated.

Benefits of the New CPI Framework

Below are some of the key benefits expected from the new CPI framework:

The new system will capture the shift in consumer habits toward online platforms.

With real-time pricing and actual consumption habits included, CPI figures will be more accurate.

Government bodies like the RBI and Finance Ministry will have more relevant data to base their monetary and fiscal policies on.