GS3 · Inflation

How should rent enter the new CPI?

Battle IAS current affairs title card: How should rent enter the new CPI? (GS3 · Inflation, 30 October 2025)
Asked by UPSCPrelims 20201 PYQ

UPSC has already asked about this. Read the story with these questions in mind.

What happened

  • MoSPI released a discussion paper on changing the housing index method in the new CPI series [PIB].
  • Housing has a weight of 21.67% in urban CPI and 10.07% at the all-India level in the current series [PIB].

Background

  • This is part of the CPI base revision [PIB].

Why it matters

  • Rent is sticky; how it is measured changes how fast headline inflation moves.

How to use this in Mains

GS-III Indian economy: growth, development and macro stability

  1. As per PIB (2025-10-30): moSPI released a discussion paper on changing the housing index method in the new CPI series.
  2. Rent is sticky; how it is measured changes how fast headline inflation moves.
Quotable data point

Housing has a weight of 21.67% in urban CPI and 10.07% at the all-India level in the current series.

PIB: MoSPI: Discussion paper on housing index in new CPI, 30 Oct 2025

Exam angle

UPSC

Prelims: CPI weights.

Practice MCQs

Original practice questions (not PYQs).

Practice · UPSC

Housing weight in urban CPI

Answer (b) & explanation

PIB.

Practice · UPSC

Housing weight in all-India CPI

Answer (a) & explanation

PIB.

Practice · UPSC

Ministry

Answer (a) & explanation

PIB.

Go deeper

Official source: PIB: MoSPI: Discussion paper on housing index in new CPI, 30 Oct 2025

facts from cited sources only; faculty review pending