PRESS RELEASE OF CONSUMER PRICE INDEX ON BASE 2024=100 FOR APRIL, 2026

1. At a Glance

• CPI (Combined) headline retail inflation for April 2026 stood at 3.48% (provisional), with Consumer Food Price Index (CFPI) at 4.20%, both released under the new Base Year 2024=100 series. [1][2]
• Released by the National Statistical Office (NSO), Ministry of Statistics & Programme Implementation (MoSPI) on 12 May 2026. [1]
• Important for UPSC because CPI (Combined) is the nominal anchor for RBI's flexible inflation targeting (FIT) under Section 45ZA of the RBI Act, 1934. [5]

2. Why in the News

• Fourth monthly release under the revamped CPI 2024=100 series (replacing the decade-old 2012=100 base). [3][4]
• Headline CPI of 3.48% remains below RBI's 4% target midpoint and well within the 2–6% tolerance band, signalling continued disinflation. [1][5]
• Comes amid RBI's ongoing review of the monetary policy framework (Discussion Paper, Aug 2025) ahead of the next 5-year target notification due by 31 March 2026. [5]

3. Background & Evolution

• 1995: CPI-IW, CPI-AL, CPI-RL existed; no unified all-India CPI.
• 2011: NSO launched all-India CPI (Rural/Urban/Combined) with base 2010=100. [4]
• 2015: Base shifted to 2012=100 using NSS 2011–12 consumption data. [4]
• May 2016: RBI Act amended to add Section 45ZA — statutory FIT framework. [5]
• 5 August 2016: 4% CPI target (±2%) notified for 2016–2021; retained in March 2021 review for 2021–2026. [5]
• 12 February 2026: NSO released the first CPI press note on base 2024=100 (for January 2026: 2.75%). [3][4]
• April 2026 release (12 May 2026): latest provisional data. [1]

4. Core Static Facts

• Compiling agency: NSO, under MoSPI. [1][3]
• Base year: 2024=100; weights derived from Household Consumption Expenditure Survey (HCES) 2023–24. [4]
• Classification framework: COICOP 2018 — 12 divisions, 43 groups, 92 classes, 162 subclasses, 358 items (replaces earlier 6-group structure). [4]
• Statutory basis for FIT: Section 45ZA, RBI Act 1934 (target set by Centre in consultation with RBI every 5 years); Section 45ZB sets up the 6-member MPC. [5]
• Current inflation target: 4% CPI Combined, tolerance band 2–6%, notified 5 Aug 2016, retained in Mar 2021 till 31 March 2026. [5]
• April 2026 (Provisional) data [1]:
• CPI General: Rural 3.74%, Urban 3.16%, Combined 3.48%
• CFPI: Rural 4.26%, Urban 4.10%, Combined 4.20%

• Index values (Combined): CPI General 105.12, March 2026 final Combined CPI 3.40%

• Housing inflation (urban + rural avg): 2.15% (April 2026). [2]

5. Multi-Dimensional Analysis

• Economic: Headline at 3.48% gives MPC policy space for accommodative stance; food at 4.20% indicates supply-side pressures persist despite goods deflation.
• Administrative / Statistical: New basket captures OTT subscriptions, e-commerce, modern services — fixes long-standing critique that 2012 basket under-represented services and digital economy. [4]
• Legal / Constitutional: CPI is the statutory target variable under the RBI Act (post-2016 amendment); base revision affects measurement of the legally notified inflation target. [5]
• Social: Separate rural (3.74%) vs urban (3.16%) prints — rural-urban gap of 58 bps reflects food weight asymmetry; rural households face higher cost-of-living pressure.
• Governance: Aligning CPI with GDP and IIP base year revisions improves coherence of national accounts; NSO announced parallel base-year updates. [4]

6. Recent Developments (last 12-18 months)

• Aug 2025: RBI Discussion Paper on Review of Monetary Policy Framework released. [5]
• 1 Oct 2025: RBI Monetary Policy Statement 2025-26. [5]
• 12 Feb 2026: First CPI release on base 2024=100 (Jan 2026 = 2.75%). [3][4]
• March 2026 (Final): Combined CPI inflation 3.40%; CFPI 3.87%. [1]
• 12 May 2026: April 2026 release — 3.48% headline, 4.20% food. [1]

7. Prelims Hooks

• New CPI base year is 2024=100, replacing 2012=100. [4]
• Weights based on HCES 2023–24. [4]
• NSO under MoSPI compiles CPI (not RBI, not Labour Bureau). [1][3]
• Labour Bureau still compiles CPI-IW, CPI-AL, CPI-RL (distinct from MoSPI's CPI series).
• CPI 2024 series uses COICOP 2018 with 12 divisions / 358 items. [4]
• April 2026 CPI Combined inflation: 3.48% (provisional). [1]
• April 2026 CFPI Combined: 4.20%. [1]
• Rural inflation 3.74% > Urban 3.16% in April 2026. [1]
• RBI inflation target: 4%, band 2–6%, under Section 45ZA, RBI Act 1934. [5]
• FIT statutory framework introduced via 2016 amendment to RBI Act. [5]
• Target notified by Central Government in consultation with RBI (not RBI alone). [5]
• MPC has 6 members under Section 45ZB. [5]
• Current target (2021–26) was retained in March 2021 review. [5]
• First CPI 2024=100 release: 12 Feb 2026 (Jan 2026 inflation 2.75%). [3]

8. Mains Relevance

• GS Paper III — Indian Economy: Issues relating to planning, mobilisation of resources, growth, development; inflation, monetary policy.
• Possible question stems: 1. "Examine the rationale and methodological improvements of the CPI base year revision to 2024=100. How does it affect monetary policy formulation?" (GS-III) 2. "Discuss the adequacy of CPI as the nominal anchor under India's Flexible Inflation Targeting framework. Should food inflation be excluded?" (GS-III) 3. "Persistently divergent rural-urban inflation prints pose challenges for a single inflation target. Critically analyse." (GS-III)

9. Related Topics to Study Next

• WPI (base 2011-12) — DPIIT compiles; contrast with CPI.
• Monetary Policy Committee — composition, voting, transmission.
• HCES 2022-23 & 2023-24 — basis for CPI weights & poverty estimates.
• Section 45ZA/ZB/ZN, RBI Act 1934 — legal architecture of FIT.
• GDP base year revision — parallel NSO exercise.
• Core inflation vs Headline inflation — policy debate.
• Food and Beverages share in CPI basket — supply shocks transmission.
• CPI-IW — used for DA revisions for Central govt employees.

10. Common Errors / Trap Areas

• Confusing compiler: CPI (Rural/Urban/Combined) is by MoSPI/NSO, not RBI and not Labour Bureau. Labour Bureau compiles CPI-IW/AL/RL.
• Target notifier: Inflation target is fixed by Central Government in consultation with RBI, not unilaterally by RBI or MPC. [5]
• Base year confusion: Old base was 2012=100, new is 2024=100 (not 2023 or 2011-12). [4]
• Tolerance band is ±2% around 4% (i.e., 2–6%), not ±1%. [5]
• CFPI ≠ Food & Beverages group of CPI — CFPI is a narrower food-only index.