Inflation Measurement M.C. Singhi

Price Increase- How is it assessed Commodity Prices Price Indices User Groups Source Agencies Method of Compilation Communication & Use

Inflation Measurement Wholesale Price Index Consumer Price Indices GDP Deflator

Indices for Inflation Measurement - Salient features ECONOMIC DIVISION CPI-UNMECPI-IWCPI-ALCPI-RLWPI WeightsConsumer Expenditure SurveyWholesale Transaction s Base Year No Items Centres Time Lag6 W1 M3 W 2W FrequencyMMMMW

Sectoral weights

Price Indices- Wholesale Prices Wholesale Price Index Computed since 1944 Basket of Commodities Weighting Diagram Collection of price quotes Release of information

Consumer Price Indices Family Living Survey Selection of Commodities Selection of Centres Weights Compilation Other indices of similar varieties

Price Rise- Impact Consumers Producers Interest Rate Exchange Rate Trade- Domestic & International

Alternate ways of measuring inflation Year on year- conventional approach 52-weeks average Build up during the fiscal year Weekly/monthly build up Deseasonalised annualized inflation

Alternate ways of inflation- results Year on year week average Fiscal year build up

Movement of Index & Inflation- All Commodities

Movement of Index & Inflation- Primary Commodities

Movement of Index & Inflation- Fuel & Power

Movement of Index & Inflation- Manufactured Products

Movement of Index – WPI & CPIs

GDP Deflator (per cent) (Q1) GDP FC Private Consumption Govt Consumption GFCF GDP MP ECONOMIC DIVISION

Inflation- update WPICPI-IWCPI-UNMECPI-ALCPI-RL MAR APR MAY JUN JUL AUG SEP ECONOMIC DIVISION

Major contributors to inflation WeightOct 18, 2008Oct 20, 2007 InflationWCInflationWC Primary Articles Food Articles Non-Food Articles Minerals Fuel & Power Minerals Oils Manufacture Products Food Products Chemical Products Non-Metallic Min. Products Basic Metals & Products Machinery & Machine Tools ECONOMIC DIVISION

WPI- Index and Inflation trend

Deseasonalised index/inflation build up SFIndexIndex- R Build up Inf. Annu. Inf IndexIndex R Build up inf. Annu. Inf. Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

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