Sunday, October 25, 2009

Monthly inflation report:

Currently, inflation is reported every week based on the Wholesale Price Index (WPI). The base year (reference) of the current WPI numbers is 1993-94 .

The integrity of inflation data and its coverage has been in question since the last few quarters. The government has recently cleared a proposal to shift to a monthly WPI series with a much wider coverage than the current WPI index.

The base year of the new WPI index will be 2004-05 and it will cover over 1,200 commodities . It is expected to deliver inflation numbers closer to ground reality.

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