Government is taking steps to include ecommerce data in the Consumer Price Index (CPI) to better reflect current consumer spending habits
Ministry of Statistics and Programme Implementation (MoSPI) has started discussions with other ministries and online retailers to determine the best way to incorporate this informatio
The updated CPI, with 2024 as the new base year, is expected to be released early next year
To better reflect current consumer spending habits, the government is taking steps to include ecommerce data in the Consumer Price Index (CPI).
According to an ET report, the Ministry of Statistics and Programme Implementation (MoSPI) has started discussions with other ministries and online retailers to determine the best way to incorporate this information.
The report said that the updated CPI, with 2024 as the new base year, is expected to be released early next year.
Notably, CPI is a measure of inflation that tracks price changes over time. It’s calculated based on the prices of a basket of goods and services that households buy.
The weights of items in the index will be derived from the Household Consumption Expenditure Survey (HCES) 2022-23 (August-July).
Further, MoSPI is collaborating with the Department for Promotion of Industry and Internal Trade (DPIIT) and the Ministry of Electronics and Information Technology (MeitY) on this initiative.
Talks with ecommerce companies are focused on sharing data without affecting business strategies or customer privacy.
“There should be no negative impact on business and customer privacy,” ET quoted a ministry official saying.
The current CPI monitors 299 items across numerous rural and urban markets. Updating the CPI to include online sales data aims to provide a more accurate picture of inflation, considering the growing influence of ecommerce on consumer behavior.
The development comes at a time when Quick Commerce has emerged as the next battleground in the ecommerce space. Zomato’s Blinkit, Swiggy’s Instamart, and Zepto are among the major players in the space. The trio cumulatively reported over $1 Bn in revenue in FY24.
However, ecommerce giants Flipkart and Amazon have also entered the space with their offerings. Besides, there are JioMart and BigBasket who are also seeking a share of the pie.
While quick commerce started with grocery deliveries, the food delivery space is also seeing a rise in the number of companies offering 10-15 minute deliveries.
While Zomato has launched a 15-minute food delivery service and Blinkit’s Bistro, Swiggy has launched Bolt and SNACC for quick deliveries. Zepto has also launched its own standalone app named “Zepto Cafe” to offer similar services. Besides, new players like Swish and Zing are also offering quick food delivery services.
