India Consumer Price Index (CPI) y/y

India's Consumer Price Index (CPI) y/y reflects changes in prices for goods and services, in the specified month compared to the same month of the previous year. Information on prices is collected monthly by interviewing residents of urban areas who are employed at private and public sector companies.

The index is calculated based on the prices of goods and services in the consumer basket, the composition of which reflects the consumption structure of Indian households.

The basket items are reviewed at least once a year to reflect actual economic, technological and cultural patterns. A fixed set of weights is applied to price changes for each item in the basket (the weight of the basket item reflects its importance for the typical household budget). If a product brand becomes no longer presented in the stores, the one closest to it in price and comparable in quality is added to the basket to maintain representativeness.

The CPI calculation does not include the expenditures of owner-occupied dwellings (such technical works) and taxes. However, utility bills, minor home repairs and maintenance of utility systems are included in the index.

The Consumer Price Index is the key indicator to measure inflation and the state of Indian economy. This index may affect interest rates, tax incentives, wages and government benefits. Being a measure of inflation, the CPI may have a strong impact on the value of the Indian rupee. Its growth can be seen as positive for the INR quotes.