India Turns to Amazon, Flipkart for Real-Time Inflation Data

TLDRs;

• India will use Amazon and Flipkart prices to update CPI and better track digital commerce.
• E-commerce pricing data will be collected weekly from 12 major cities for accuracy.
• Revised CPI will also integrate airfares, streaming services, and evolving household spending.
• India modernizes statistics amid rapid digitalization and changing consumer behavior.

India is taking a major step toward modernizing how it measures inflation by directly sourcing price data from e-commerce giants Amazon and Flipkart.

Saurabh Garg, secretary of the Ministry of Statistics and Programme Implementation, confirmed the initiative, aimed at making the country’s Consumer Price Index (CPI) more reflective of online shopping trends.

Traditionally, India’s CPI relied heavily on in-person surveys of physical stores, using consumer spending patterns from as far back as 2011-12. However, with over 270 million online shoppers today, this framework no longer captures the full picture of household spending.

Capturing Online Price Trends

The government has begun collecting prices from these platforms in 12 major cities and is negotiating for direct access to the data. E-commerce firms are asked to provide weekly average prices, which will be cross-verified against other data sources to ensure accuracy.

This shift is particularly significant as online commerce continues to expand rapidly in India, projected to grow around 22% annually. Ignoring these digital channels would leave major gaps in inflation measurement, potentially distorting policy decisions.

CPI Update to Include Airfares, Streaming

The revised CPI, expected to roll out early next year, will also integrate data from sectors like airfares and streaming services, reflecting the evolving consumption habits of Indian households.

This comprehensive approach will provide a more accurate gauge of inflation in a digital-first economy.

Beyond CPI, India plans broader statistical reforms, including a new GDP series based on the 2022–23 base year. The ministry has also expanded monthly employment surveys and is developing a quarterly Index of Services Production, acknowledging that services now account for more than half of the nation’s GDP.

Aligning With Global Trends

India’s move mirrors a global pattern where statistical agencies are incorporating digital data into economic measurement.

Countries like the United States and South Korea have begun integrating online prices and scanner data into their inflation metrics, recognizing that traditional survey methods miss a substantial portion of modern commerce.

By cross-checking e-commerce prices with physical store data, India is addressing the challenge that online prices may sometimes diverge from offline retail prices. This careful calibration is essential to avoid statistical bias while capturing the full scope of consumer behavior.

Modernizing Indian Statistics

The initiative reflects a broader understanding that statistical systems must evolve to keep pace with rapid digitalization.

By integrating e-commerce data, India not only enhances its economic indicators but also positions itself as a leader among emerging economies adapting to the digital era.

The modernization of CPI and GDP measurement ensures policymakers, investors, and consumers have access to more accurate, real-time economic data. With these reforms, India is bridging the gap between traditional statistical frameworks and the fast-changing realities of a digital economy.

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