Heard the latest number? Old inflation index fades out
A decades-old economic benchmark is saying good-bye, after a tumultuous era when it was the official scoreboard for politicians and economists.business Updated: Nov 05, 2009 21:04 IST
A decades-old economic benchmark is saying good-bye, after a tumultuous era when it was the official scoreboard for politicians and economists.
It is end of the road for the wholesome weekly wholesale price index (WPI) based inflation rate.
The government on Thursday said the weekly WPI will henceforth cover only the primary articles and commodities in the broad group “fuel, power, light and lubricants”.
The measure is part of an attempt to make the data more updated and consistent to improve the quality of official statistics.
The WPI covering “all commodities” will henceforth be a consolidated index supplied every month, starting next week.
Thus, there would be two indices, one weekly ( for food and fuel items), and the other monthly ( a consolidated index that would cover all industrial goods).
At present, provisional WPI data is announced with a two-week lag and final data with a two-month lag.
A new series has been finalised on the recommendations of a working group headed by Planning Commission member Abhijit Sen. “Test runs of the new series is underway collating price data given by more than 3,500 manufacturing units,” said a senior
The new series will have 2004-05 as the base year, as against 1993-94 in the present mode.