Why in News?

• The Central Statistics Office (CSO), Ministry of Statistics and Programme Implementation has revised the Base Year of the Consumer Price Index (CPI).

Key Changes:

• The base year revised from 2010=100 to 2012=100.
• It will affect from the release of indices for the month of January 2015.
• The CPI (Rural, Urban, Combined) on Base 2012=100 is being released for the month of September 2018.
• The Consumer Food Price Index (CFPI) for all India Rural, Urban and Combined are also being released for September 2018.

CPI:

• A consumer price index (CPI) measures changes in the price level of market basket of consumer goods and services purchased by households.
• It is a statistical estimate constructed using the prices of a sample of representative items whose prices are collected periodically.
• The index is usually computed monthly, or quarterly in some countries, as a weighted average of sub-indices for different components of consumer expenditure