New CPI 2024 Explained | Inflation, WPI vs CPI & RBI Impact | NEXT IAS

In this 10 Minutes Mastery session, we decode the newly revised Consumer Price Index (CPI) series with base year 2024 and understand its significance for inflation measurement in India. The video explains inflation, inflation rate, and disinflation with simple examples, and clarifies the difference between CPI and WPI. We analyze why the base year was revised from 2012 to 2024, key structural changes such as adoption of COICOP 2018, expansion of consumption categories, inclusion of online marketplaces, revised weightage of food and housing, and updated item baskets. The session also highlights implications for RBI’s monetary policy (4% ± 2% target), fiscal policy decisions, welfare schemes, DA revisions, and poverty estimation. Challenges like digital volatility, rural data gaps, and comparability issues are also discussed, along with the need to modernize WPI towards Producer Price Index (PPI). Perfect for UPSC Prelims and Mains preparation. #newcpi2024 #cpi #consumerpriceindex #inflationexplained #wpivscpi #retailinflation #rbiinflationtarget #monetarypolicyindia #fiscalpolicyindia #upscprelims #economycurrentaffairs #inflationrate #coicop2018 #householdconsumption #indianeconomy #nextias #upsc2026 #youtubevideo #viralvideo #viral #foryou