Statistics Ministry Calls For Relook At Housing Index Compilation Method

New Delhi, October 31, 2025: The Ministry of Statistics and Programme Implementation has proposed that the methodology of housing index compilation be revised as part of the base revision exercise of the consumer price index (CPI).

Housing makes up a major part of the CPI with an expenditure share of nearly 21.7 per cent in urban areas and 10.1 per cent at the all-India level in the current series. MOSPI made the proposal in a recent discussion paper, saying: “In the ongoing base revision exercise, all aspects of index compilation methodology are expected to be revisited to prepare a more robust and resilient CPI series.”

Rent data will be collected monthly, replacing the present method of collection every six months. The new series will compile the Housing Index for both rural and urban sectors. This is significantly different from the current series which includes only the urban sector, because there is no imputed rent data for rural areas in the household consumption expenditure survey 2011-12.

Rent data can be collected from 12 dwellings per urban market, subject to availability. In selected villages, data will be collected from 6 dwellings, again based on availability.

The discussion paper says that distortions introduced due to concessional or employer-provided dwellings as govt accommodations will be eliminated as such houses will be excluded from the compilation of the index since they do not reflect the actual rent market.

Meanwhile, MOSPI has has invited views and comments from experts, academicians, ministries, departments, states, financial institutions and other stakeholders on the proposed housing index compilation methodology.