Government to add Amazon, Flipkart data directly in Inflation Index revamp, what this means

The government has decided to begin collecting price data directly from e-commerce companies like Amazon and Flipkart to revamp its benchmark inflation index. A report citing the head of the Ministry of Statistics and Program Implementation (MoSPI) claimed that this move is aimed at capturing shifting consumption habits and making the retail inflation data more accurate and robust. By integrating online prices, the government will account for the rising share of e-commerce in household spending. The move aligns with a global trend, as other countries, including the US and South Korea, have also started to incorporate online and scanner data into their inflation measures. A report by the news agency Reuters cited a private study to claim that India had around 270 million online shoppers in 2024, while this number is expected to rise by 22% each year.