India’s inflation rate fell to 8.5 per cent in August measured by a new wholesale price index (WPI) series that was unveiled on Tuesday.
Going by the old series, inflation fell to 9.5 per cent as compared to 9.8 per cent in July.
The new series has been finalised on the recommendations of a working group headed by Planning Commission member Abhijit Sen.
The new series will have 2004-05 as the base year, as against 1993-94 in the present mode, and will eventually reflect a consumption basket that is relevant in today’s scenario.
Some of the important items included in the new series basket are mineral water, refrigerators, computers, microwave oven, communication equipment, TV, VCD, washing machine and auto parts.
A representative commodity basket comprising 676 items has been selected and a new weighting diagram reflecting the current structure of the economy derived for the new series. The number of quotations selected for collecting price data for the above items is 5,482.
“The new series will give a robust, truer picture of the Indian economy," Commerce minister Anand Sharma said, releasing the new index.