New Delhi, Oct 4 The government on Saturday said it is conducting the base revision of the Consumer Price Index (CPI), as it released discussion paper 2.0 on the treatment of free PDS items in the CPI compilation.
The process includes enhancing coverage of price collection, refining existing methodologies, exploring new data sources and effective use of modern technology in the price collection and index compilation.
In view of the launch of free food grain distribution scheme by the government from January 1 2023 covering 75 per cent rural and 50 per cent urban population, the issue of appropriate and realistic reflection of the same in CPI and inflation measurement has become relevant and desirable, according to the Ministry of Statistics and Programme implementation (MoSPI).
“The issue has been deliberated in detail with the National and International experts, Reserve Bank of India, International Monetary Fund and other UN institutions and Government organisations,” the ministry informed.
The proposed methodology in the discussion paper 2.0 is designed by MoSPI after incorporating suggestions and feedback received during above mentioned interactions.
The ministry is inviting views and comments from experts, academicians, government bodies, state governments, financial institutions and other stakeholders on the Discussion paper 2.0 on treatment of free PDS items in the CPI compilation framework. Comments and suggestions may be sent by October 22.
India’s CPI inflation edges up to 2.07 pc in Aug, food inflation stays in negative zone
Meanwhile, India’s inflation rate based on the Consumer Price Index (CPI) edged up to 2.07 per cent in August, although prices food continued to decline during the month, easing the burden on the common man.
The headline inflation in August was marginally higher than the 1.61 per cent in July this year, which was the lowest level of year-on-year retail inflation since June, 2017. The inflation rate is well within the RBI’s target rate of 4 per cent, which allows the central bank to continue with the soft money policy to spur growth.
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