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Feb 13, 2026
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LONG
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"The consumption basket... reflects the improving socioeconomic conditions... reduced proportion of expenditure on food... increased weightage for prepared foods for restaurant services... and in the personal discretionary items." The government's statistical re-weighting confirms a structural shift in consumer behavior. As incomes rise (speaker notes lowest decile expenditure has doubled), spending moves from survival (basic food) to lifestyle (dining out, personal care). This creates a tailwind for companies servicing the aspirational Indian middle class. LONG. Persistent food inflation could force consumers to cut back on discretionary spending despite the structural trend. |
Bloomberg Markets
India’s New Inflation Basket Explains India’s...
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Feb 13, 2026
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LONG
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"We increase the weightage for housing, which is great representative of the higher rents that we all pay... utilities like water, electricity." The increased weighting of housing in the CPI basket acknowledges that urbanization and housing costs are becoming a larger chunk of the Indian wallet. This signals robust demand for residential real estate and the construction materials required to build it. LONG. Higher interest rates (if inflation spikes) could dampen mortgage demand. |
Bloomberg Markets
India’s New Inflation Basket Explains India’s...
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Feb 13, 2026
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LONG
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"We've added e-commerce, online markets... Given the fact that over the past decade, due to high levels of digitalisation in the country, we have access to more real time data." The inclusion of e-commerce and streaming services in official inflation and GDP data validates the digital economy as a critical pillar of India's growth. This benefits domestic tech firms and global giants with significant Indian operations (Walmart via Flipkart, Amazon via India marketplace). LONG. Regulatory changes in India regarding foreign ownership of e-commerce platforms. |
Bloomberg Markets
India’s New Inflation Basket Explains India’s...
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