The government is reportedly considering reducing the weight of food items in the Consumer Price Index (CPI) basket to address inflation concerns. The move follows findings from the Household Consumption Expenditure Survey (HCES) 2022–23, which highlighted a decline in household spending on food.
According to The Economic Times, the weightage of food items in the CPI basket could be reduced by up to 6.5 percentage points in rural areas and 3.4 percentage points in urban areas.
This proposal comes amid rising calls to adjust how food items impact inflation data. The 2023–24 Economic Survey suggested excluding food from inflation calculations, with Chief Economic Adviser V Anantha Nageswaran citing volatile food prices as a primary driver of inflation spikes. Removing highly volatile commodities like tomatoes, onions, and potatoes could reportedly lower retail inflation to 4 percent.
However, recent government initiatives, such as the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY), have provided free rations to over 80 crore people, reducing the burden of food costs for many households.
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