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