What Changes Are Proposed for the Housing Index in the New CPI Series?
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Synopsis
The government has released a discussion paper on the proposed changes to the housing index compilation for the new CPI series. Stakeholders are invited to provide feedback by November 20, making this an essential opportunity for public involvement in economic decisions.
Key Takeaways
- Discussion paper on housing index methodology released.
- Comments due by November 20.
- Housing comprises 21.67% of urban CPI.
- Inflation rate at an 8-year low of 1.54%.
- Food inflation recorded at -2.28%.
New Delhi, Oct 30 (NationPress) On Thursday, the government unveiled a discussion paper detailing suggested modifications to the housing index compilation methodology in the new Consumer Price Index (CPI) series.
The Ministry of Statistics and Programme Implementation (MoSPI) is currently engaged in the essential base revision process of the CPI. This discussion paper is accessible on the MoSPI website, and stakeholders are encouraged to submit their comments and suggestions by November 20.
Housing is a significant component of the CPI, accounting for an expenditure share of 21.67 percent in urban areas and 10.07 percent at the national level in the current series.
The ministry emphasizes that housing serves as a vital indicator of household well-being, not only in India but globally, as a substantial portion of income is allocated to either rent or home maintenance.
According to the ministry, "Inflation derived from the house rent index is a crucial instrument for policymakers and households alike. Hence, a robust and relevant methodology for housing index compilation that accurately reflects its monthly fluctuations is of utmost significance."
In light of feedback from various stakeholders, experts, and international best practices, MoSPI is recommending alterations to the current housing index compilation methodology.
The paper outlining the proposed changes provides comprehensive details on both the existing methodology and the suggested modifications for the new series.
The ministry seeks insights and feedback from experts, academics, central government ministries and departments, state governments, financial institutions, and other stakeholders regarding the proposed housing index compilation methodology.
India’s inflation rate, based on the Consumer Price Index (CPI), dropped to a remarkable 8-year low of 1.54 percent in September this year compared to the same month last year, attributed to lower prices of food items and fuels, as per the latest data from the Ministry of Statistics.
This represents the lowest year-on-year inflation since June 2017 and is less than the 2.05 percent inflation rate recorded in August. Food inflation remained in negative territory for the fourth consecutive month, hitting -2.28 percent in September, according to the reported figures.
Point of View
The government's move to revise the housing index compilation methodology demonstrates a proactive approach to ensure that the CPI accurately reflects economic realities. Engaging stakeholders is essential, fostering transparency and public trust in these critical economic measures.
NationPress
26/12/2025
Frequently Asked Questions
What is the significance of the housing index in the CPI?
The housing index is a critical component of the CPI as it reflects the cost of living and impacts inflation rates, affecting financial planning for households and policymakers.
How can stakeholders provide their feedback on the proposed changes?
Stakeholders can submit their comments and suggestions regarding the proposed changes until November 20 through the MoSPI website.
What was India's inflation rate in September?
India's inflation rate dropped to an 8-year low of 1.54 percent in September, largely due to decreased food and fuel prices.
What are the proposed changes in the housing index methodology?
The proposed changes aim to enhance the robustness and relevance of the housing index compilation methodology based on feedback and best practices.
Why is housing considered a crucial indicator for household well-being?
Housing expenses represent a significant portion of household income, making it a vital factor in determining overall economic health and living standards.
