Study of Consumer Price Index in India
Consumer Price Index
Consumer Price Index (CPI) in India comprises multiple series classified based on different economic groups. There are four series 1. CPI UNME (Urban Non-Manual Employee) 2. CPI AL (Agricultural Labourer) 3. CPI RL (Rural Labourer) 4. CPI IW (Industrial Worker)
Central Statistical Organization is responsible for calculating and publishing the CPI UNME series, while Department of Labour is for others CPI indexes. All above CPI’s are calculated based on the base year 1982. The National Statistical Commission (2001) recommended that there should be three indexes for – rural, urban and all India. So from February 2011 CSO publish CPI(urban), CPI(rural) and CPI(combined) instead of the CPI(UNME) on base 2010 = 100. New CPI indexes are release by the Ministry of Statistics and Program Implementations, Government of India every month. They first publish the provisional indices and then final. Giving example in month of August, 2012 concerned ministry provides the provisional CPI data for month of July and final data for June. Price data are collected from selected towns by the Field Operations Division of NSSO and from selected villages by the Department of Posts. Price data are received through web portals being maintained by the National Informatics Centre.
To calculate the CPI numbers, we need consumption pattern i.e. weighting diagram of components and latest price data of all components.
Weighting Diagram
Weighting diagram gives information about the percentage of consumption for each item. The weighting diagram is based on the consumer consumption of rural and urban household obtained from the NSS 61st round Consumer Expenditure Survey data (2004-05). To update latest trend of consumption weighting diagram gets updated on regular basis. Non-consumption expenditure such as wages to servants has been excluded. For the purpose of preparation of weighting diagrams only consumption expenditure has been considered. Items in
Consumer Price Index (CPI) in India comprises multiple series classified based on different economic groups. There are four series 1. CPI UNME (Urban Non-Manual Employee) 2. CPI AL (Agricultural Labourer) 3. CPI RL (Rural Labourer) 4. CPI IW (Industrial Worker)
Central Statistical Organization is responsible for calculating and publishing the CPI UNME series, while Department of Labour is for others CPI indexes. All above CPI’s are calculated based on the base year 1982. The National Statistical Commission (2001) recommended that there should be three indexes for – rural, urban and all India. So from February 2011 CSO publish CPI(urban), CPI(rural) and CPI(combined) instead of the CPI(UNME) on base 2010 = 100. New CPI indexes are release by the Ministry of Statistics and Program Implementations, Government of India every month. They first publish the provisional indices and then final. Giving example in month of August, 2012 concerned ministry provides the provisional CPI data for month of July and final data for June. Price data are collected from selected towns by the Field Operations Division of NSSO and from selected villages by the Department of Posts. Price data are received through web portals being maintained by the National Informatics Centre.
To calculate the CPI numbers, we need consumption pattern i.e. weighting diagram of components and latest price data of all components.
Weighting Diagram
Weighting diagram gives information about the percentage of consumption for each item. The weighting diagram is based on the consumer consumption of rural and urban household obtained from the NSS 61st round Consumer Expenditure Survey data (2004-05). To update latest trend of consumption weighting diagram gets updated on regular basis. Non-consumption expenditure such as wages to servants has been excluded. For the purpose of preparation of weighting diagrams only consumption expenditure has been considered. Items in
References: http://mospi.nic.in/Mospi_New/site/home.aspx http://www.rbi.org.in/home.aspx http://www.wikipedia.org/