1. Inflation Measurement M.C. Singhi

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

3. Inflation Measurement Wholesale Price Index Consumer Price Indices GDP Deflator

4. Indices for Inflation Measurement - Salient features ECONOMIC DIVISION CPI-UNMECPI-IWCPI-ALCPI-RLWPI WeightsConsumer Expenditure SurveyWholesale Transaction s Base Year1984-8520011986-87 1993-94 No Items146-365120-360260 435 Centres5978600 1918 Time Lag6 W1 M3 W 2W FrequencyMMMMW

5. Sectoral weights

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

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

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

9. 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

10. Alternate ways of inflation- results 2006-072007-082008-09 Year on year5.353.1110.72 52- week average4.615.128.45 Fiscal year build up5.882.385.21

11. Movement of Index & Inflation- All Commodities

12. Movement of Index & Inflation- Primary Commodities

13. Movement of Index & Inflation- Fuel & Power

14. Movement of Index & Inflation- Manufactured Products

15. Movement of Index – WPI & CPIs

16. GDP Deflator (per cent) 2004-052005-062006-072007-08 2008-09 (Q1) GDP FC5.54.15.64.27.8 Private Consumption2.92.85.14.28.7 Govt Consumption6.24.77.84.68.9 GFCF9.65.65.54.38.3 GDP MP5.64.15.64.37.6 ECONOMIC DIVISION

17. Inflation- update WPICPI-IWCPI-UNMECPI-ALCPI-RL 2005-06 4.4 4.73.9 2006-07 5.46.76.67.87.5 2007-08 4.66.25.97.57.2 MAR7.487.876.027.917.63 APR8.047.816.998.888.61 MAY8.867.756.769.118.84 JUN11.827.697.318.778.75 JUL12.368.337.399.41 AUG12.499.028.5410.29 SEP12.04 9.77 -10.98 ECONOMIC DIVISION

18. Major contributors to inflation WeightOct 18, 2008Oct 20, 2007 InflationWCInflationWC Primary Articles22.0 10.9223.465.1136.93 Food Articles15.4 8.4312.663.2716.82 Non-Food Articles6.1 10.816.0311.4620.30 Minerals0.5 52.484.70-0.52-0.16 Fuel & Power14.2 14.0928.21-1.52-10.94 Minerals Oils7.0 21.7125.53-1.58-6.67 Manufacture Products63.7 9.2648.234.2174.54 Food Products11.5 7.987.573.2710.65 Chemical Products11.9 9.6210.225.7920.56 Non-Metallic Min. Products2.5 3.560.8210.207.55 Basic Metals & Products8.3 19.8317.814.2112.83 Machinery & Machine Tools8.4 5.253.207.1014.28 ECONOMIC DIVISION

19. WPI- Index and Inflation trend

20. Deseasonalised index/inflation build up 2007-082008-09 SFIndexIndex- R Build up Inf. Annu. Inf IndexIndex R Build up inf. Annu. Inf. Apr99.7211.5212.10.33.7228.5229.20.79.0 May99.9212.3212.50.22.1231.1231.30.911.8 Jun100.1212.3212.1-0.2-2.4237.4237.22.534.8 Jul100.2213.6213.20.56.3240.0239.51.012.6 Aug100.3213.8213.20.0-0.1240.5239.80.11.3 Sep100.9215.1213.20.00.1241.0238.9-0.4-4.6 Oct100.7215.2213.70.23.0 Nov100.6215.9214.60.45.2 Dec99.8216.4216.81.013.2 Jan99.4218.2219.51.215.9 Feb99.1219.9221.91.113.8 Mar99.1225.5227.52.535.2

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