{"id":23253,"date":"2015-02-20T06:08:37","date_gmt":"2015-02-20T06:08:37","guid":{"rendered":"http:\/\/vskills.in\/certification\/blog\/?p=23253"},"modified":"2024-04-03T13:15:18","modified_gmt":"2024-04-03T07:45:18","slug":"measures-of-inflation-in-india","status":"publish","type":"post","link":"https:\/\/www.vskills.in\/certification\/blog\/measures-of-inflation-in-india\/","title":{"rendered":"Measures of Inflation in India"},"content":{"rendered":"<p style=\"text-align: center\" align=\"center\"><span style=\"color: #000000\">\u00a0\u00a0<a ref=\"magnificPopup\" href=\"http:\/\/vskills.in\/certification\/blog\/wp-content\/uploads\/2015\/02\/Measures-of-Inflation-in-India.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-25305\" alt=\"Measures of Inflation in India\" src=\"http:\/\/vskills.in\/certification\/blog\/wp-content\/uploads\/2015\/02\/Measures-of-Inflation-in-India.jpg\" width=\"284\" height=\"177\" \/><\/a><\/span><\/p>\n<p style=\"text-align: left\" align=\"center\"><span style=\"color: #000000\">\u00a0\u00a0\u00a0 I.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 WPI:<\/span><span style=\"color: #000000;font-family: Calibri\">\u00a0<\/span><\/p>\n<p><span style=\"color: #000000\"><span style=\"font-family: Calibri\">The WPI is considered as one of the\u00a0\u00a0main\u00a0inflation\u00a0measures\u00a0in India, because of its availability at high frequency, national coverage and disaggregated data which facilitate a better analysis of inflation. On 14 September 2010, a new WPI series was released with base 2004-05. A representative commodity basket comprising 676 items was selected and weighting diagram was also changed to reflect the change in share of different items in the total production as well as introduction of new ones. 176 items were dropped\/ revised. The broad categories items in the WPI and their subcategories are as below:<\/span><\/span><\/p>\n<p>1. Primary Articles:<\/p>\n<ul>\n<li>Food Articles<\/li>\n<li>Non food and minerals<\/li>\n<\/ul>\n<p>2. Fuel and Power<\/p>\n<p>3. Manufactures Products:<\/p>\n<ul>\n<li>Food Products<\/li>\n<li>Non-food Products<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"color: #000000\"><span style=\"font-family: Calibri\">The share of primary articles has gown down and that of manufactured and fuel products has gone up, indicating the industrialization of the economy. Also since the share of manufactured products is higher, change in their items will affect the index more than the others.<\/span><\/span><span style=\"color: #000000\"><span style=\"font-family: Calibri\">Before Oct 2009 the WPI was released on a weekly basis, with the lag of two weeks, now the weekly release covers only the \u2018Primary\u2019 and \u2018Fuel &amp; Power\u2019 groups. The WPI for \u2018All Commodities\u2019 and \u2018Manufactured Products\u2019 is released on a monthly basis with the same time lag.<\/span><\/span><span style=\"color: #000000\"><span style=\"font-family: Calibri\">The WPI is released by the Office of the Economic Advisor, Ministry of Commerce and Industry, Govt. of India.<\/span><\/span><span style=\"color: #000000;font-family: Calibri\">\u00a0<\/span><\/p>\n<p><span style=\"color: #000000\">\u00a0\u00a0\u00a0\u00a0\u00a0 <span style=\"font-family: Calibri\">II.<\/span>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 CPI:<\/span><span style=\"color: #000000;font-family: Calibri\">\u00a0<\/span><\/p>\n<p><span style=\"color: #000000\"><span style=\"font-family: Calibri\">At the national level, there were four Consumer Price Index (CPI) numbers until recently. They were:<\/span><\/span><\/p>\n<p><span style=\"color: #000000\"><span style=\"font-family: Calibri\">A) CPI for Industrial Workers (IW), <\/span><\/span><\/p>\n<p><span style=\"color: #000000\"><span style=\"font-family: Calibri\">B) CPI for Agricultural Labourers (AL), <\/span><\/span><\/p>\n<p><span style=\"color: #000000\"><span style=\"font-family: Calibri\">C) CPI for Rural Labourers (RL) and <\/span><\/span><\/p>\n<p><span style=\"color: #000000\"><span style=\"font-family: Calibri\">D) CPI for Urban Non-Manual Employees (UNME)<\/span><\/span><\/p>\n<p><span style=\"color: #000000;font-family: Calibri\">\u00a0<\/span><span style=\"color: #000000\"><span style=\"font-family: Calibri\">All these indices have different base years and cater to specific segments of the\u00a0 population, and thus can be considered as partial indices. They are not oriented to reflect a true picture of the price behaviour and effect of price fluctuations of various goods and services consumed by the population in the country.\u00a0<\/span><\/span><span style=\"color: #000000\"><span style=\"font-family: Calibri\">Hence form January 2011 onwards the Central Statistical Organisation (CSO) of the Ministry of Statistics and Programme Implementation (MOSPI) has taken upon itself to compile a new series of CPI for the urban and rural populations separately and both combined. The indices will be released for all states and UTs and on an all-India level.<\/span><\/span><\/p>\n<p><span style=\"font-family: Times New Roman\"><span style=\"color: #000000\">The Nat<\/span><\/span><span style=\"color: #000000\"><span style=\"font-family: Calibri\">ional Sample Survey Organisation collects data for urban centres whereas MOSPI has roped in the postal department to collect price data from villages. Price<\/span><\/span><span style=\"color: #000000\"><span style=\"font-family: Calibri\"> data from 1,181 villages and 310 towns is collected.\u00a0 Weigh<\/span><\/span><span style=\"color: #000000\"><span style=\"font-family: Calibri\">ting diagrams (consumption patterns) of al the 3 indices have been derived from the results of the National Sample Survey\u2019s (NSS) 61st round of Consumer Expenditure Survey (2004-05).<\/span><\/span><\/p>\n<table width=\"517\" border=\"0\" cellspacing=\"0\" cellpadding=\"0\">\n<tbody>\n<tr>\n<td colspan=\"3\" valign=\"bottom\" nowrap=\"nowrap\" width=\"404\">\n<p align=\"center\">New series of CPI: All India weights<\/p>\n<\/td>\n<td colspan=\"2\" valign=\"bottom\" nowrap=\"nowrap\" width=\"104\"><\/td>\n<td width=\"9\"><span style=\"font-family: Calibri;font-size: medium\">\u00a0<\/span><\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"259\"><\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"71\"><\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"75\"><\/td>\n<td colspan=\"2\" valign=\"bottom\" nowrap=\"nowrap\" width=\"104\"><\/td>\n<td width=\"9\"><span style=\"font-family: Calibri;font-size: medium\">\u00a0<\/span><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\" width=\"259\"><b>Sub group\/group<\/b><\/td>\n<td valign=\"top\" width=\"71\">\n<p align=\"center\"><b>Rural<\/b><\/p>\n<\/td>\n<td valign=\"top\" width=\"75\">\n<p align=\"center\"><b>Urban<\/b><\/p>\n<\/td>\n<td colspan=\"2\" valign=\"top\" width=\"104\">\n<p align=\"center\"><b>Combined\u00a0\u00a0\u00a0 (<\/b><b>Rural+Urban<\/b><b>)<\/b><\/p>\n<\/td>\n<td width=\"9\"><span style=\"font-family: Calibri;font-size: medium\">\u00a0<\/span><\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"259\">Cereals and products<\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"71\">\n<p align=\"center\">19.08<\/p>\n<\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"75\">\n<p align=\"center\">8.73<\/p>\n<\/td>\n<td colspan=\"2\" valign=\"bottom\" nowrap=\"nowrap\" width=\"104\">\n<p align=\"center\">14.59<\/p>\n<\/td>\n<td width=\"9\"><span style=\"font-family: Calibri;font-size: medium\">\u00a0<\/span><\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"259\">Pulses and products<\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"71\">\n<p align=\"center\">3.25<\/p>\n<\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"75\">\n<p align=\"center\">1.87<\/p>\n<\/td>\n<td colspan=\"2\" valign=\"bottom\" nowrap=\"nowrap\" width=\"104\">\n<p align=\"center\">2.65<\/p>\n<\/td>\n<td width=\"9\"><span style=\"font-family: Calibri;font-size: medium\">\u00a0<\/span><\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"259\">Milk and milk products<\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"71\">\n<p align=\"center\">8.59<\/p>\n<\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"75\">\n<p align=\"center\">6.61<\/p>\n<\/td>\n<td colspan=\"2\" valign=\"bottom\" nowrap=\"nowrap\" width=\"104\">\n<p align=\"center\">7.73<\/p>\n<\/td>\n<td width=\"9\"><span style=\"font-family: Calibri;font-size: medium\">\u00a0<\/span><\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"259\">Oils and fats<\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"71\">\n<p align=\"center\">4.67<\/p>\n<\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"75\">\n<p align=\"center\">2.89<\/p>\n<\/td>\n<td colspan=\"2\" valign=\"bottom\" nowrap=\"nowrap\" width=\"104\">\n<p align=\"center\">3.90<\/p>\n<\/td>\n<td width=\"9\"><span style=\"font-family: Calibri;font-size: medium\">\u00a0<\/span><\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"259\">Egg, fish and meat<\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"71\">\n<p align=\"center\">3.38<\/p>\n<\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"75\">\n<p align=\"center\">2.26<\/p>\n<\/td>\n<td colspan=\"2\" valign=\"bottom\" nowrap=\"nowrap\" width=\"104\">\n<p align=\"center\">2.89<\/p>\n<\/td>\n<td width=\"9\"><span style=\"font-family: Calibri;font-size: medium\">\u00a0<\/span><\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"259\">Vegetables<\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"71\">\n<p align=\"center\">6.57<\/p>\n<\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"75\">\n<p align=\"center\">3.96<\/p>\n<\/td>\n<td colspan=\"2\" valign=\"bottom\" nowrap=\"nowrap\" width=\"104\">\n<p align=\"center\">5.44<\/p>\n<\/td>\n<td width=\"9\"><span style=\"font-family: Calibri;font-size: medium\">\u00a0<\/span><\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"259\">Fruits<\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"71\">\n<p align=\"center\">1.90<\/p>\n<\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"75\">\n<p align=\"center\">1.88<\/p>\n<\/td>\n<td colspan=\"2\" valign=\"bottom\" nowrap=\"nowrap\" width=\"104\">\n<p align=\"center\">1.89<\/p>\n<\/td>\n<td width=\"9\"><span style=\"font-family: Calibri;font-size: medium\">\u00a0<\/span><\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"259\">Sugar etc<\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"71\">\n<p align=\"center\">2.41<\/p>\n<\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"75\">\n<p align=\"center\">1.26<\/p>\n<\/td>\n<td colspan=\"2\" valign=\"bottom\" nowrap=\"nowrap\" width=\"104\">\n<p align=\"center\">1.91<\/p>\n<\/td>\n<td width=\"9\"><span style=\"font-family: Calibri;font-size: medium\">\u00a0<\/span><\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"259\">Condiments and spices<\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"71\">\n<p align=\"center\">2.13<\/p>\n<\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"75\">\n<p align=\"center\">1.16<\/p>\n<\/td>\n<td colspan=\"2\" valign=\"bottom\" nowrap=\"nowrap\" width=\"104\">\n<p align=\"center\">1.71<\/p>\n<\/td>\n<td width=\"9\"><span style=\"font-family: Calibri;font-size: medium\">\u00a0<\/span><\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"259\">Non- alcoholic beverages<\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"71\">\n<p align=\"center\">2.04<\/p>\n<\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"75\">\n<p align=\"center\">2.02<\/p>\n<\/td>\n<td colspan=\"2\" valign=\"bottom\" nowrap=\"nowrap\" width=\"104\">\n<p align=\"center\">2.03<\/p>\n<\/td>\n<td width=\"9\"><span style=\"font-family: Calibri;font-size: medium\">\u00a0<\/span><\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"259\">Prepared meals etc<\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"71\">\n<p align=\"center\">2.57<\/p>\n<\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"75\">\n<p align=\"center\">3.17<\/p>\n<\/td>\n<td colspan=\"2\" valign=\"bottom\" nowrap=\"nowrap\" width=\"104\">\n<p align=\"center\">2.83<\/p>\n<\/td>\n<td width=\"9\"><span style=\"font-family: Calibri;font-size: medium\">\u00a0<\/span><\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"259\">Pan, tobacco\u00a0 and Intoxicants<\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"71\">\n<p align=\"center\">2.73<\/p>\n<\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"75\">\n<p align=\"center\">1.35<\/p>\n<\/td>\n<td colspan=\"2\" valign=\"bottom\" nowrap=\"nowrap\" width=\"104\">\n<p align=\"center\">2.13<\/p>\n<\/td>\n<td width=\"9\"><span style=\"font-family: Calibri;font-size: medium\">\u00a0<\/span><\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"259\"><b>Food, beverages and tobacco <\/b><\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"71\">\n<p align=\"center\"><b>59.31<\/b><\/p>\n<\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"75\">\n<p align=\"center\"><b>37.15<\/b><\/p>\n<\/td>\n<td colspan=\"2\" valign=\"bottom\" nowrap=\"nowrap\" width=\"104\">\n<p align=\"center\"><b>49.71<\/b><\/p>\n<\/td>\n<td width=\"9\"><span style=\"font-family: Calibri;font-size: medium\">\u00a0<\/span><\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"259\"><\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"71\"><\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"75\"><\/td>\n<td colspan=\"2\" valign=\"bottom\" nowrap=\"nowrap\" width=\"104\"><\/td>\n<td width=\"9\"><span style=\"font-family: Calibri;font-size: medium\">\u00a0<\/span><\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"259\"><b>\u00a0<\/b><\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"71\">\n<p align=\"center\"><b>\u00a0<\/b><\/p>\n<\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"75\">\n<p align=\"center\"><b>\u00a0<\/b><\/p>\n<\/td>\n<td colspan=\"3\" valign=\"bottom\" nowrap=\"nowrap\" width=\"113\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"259\"><b>Fuel and light<\/b><\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"71\">\n<p align=\"center\"><b>10.42<\/b><\/p>\n<\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"75\">\n<p align=\"center\"><b>8.40<\/b><\/p>\n<\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"97\">\n<p align=\"center\"><b>9.49<\/b><\/p>\n<\/td>\n<td colspan=\"2\" width=\"16\"><span style=\"font-family: Calibri;font-size: medium\">\u00a0<\/span><\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"259\"><\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"71\"><\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"75\"><\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"97\"><\/td>\n<td rowspan=\"2\" colspan=\"2\" valign=\"bottom\" width=\"16\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"259\"><\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"71\"><\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"75\"><\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"97\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"259\">Clothing and bedding<\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"71\">\n<p align=\"center\">4.60<\/p>\n<\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"75\">\n<p align=\"center\">3.34<\/p>\n<\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"97\">\n<p align=\"center\">4.05<\/p>\n<\/td>\n<td colspan=\"2\" valign=\"bottom\" width=\"16\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"259\">Footwear<\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"71\">\n<p align=\"center\">0.77<\/p>\n<\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"75\">\n<p align=\"center\">0.57<\/p>\n<\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"97\">\n<p align=\"center\">0.68<\/p>\n<\/td>\n<td colspan=\"2\" valign=\"bottom\" width=\"16\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"259\"><b>\u00a0<\/b><b>Clothing, bedding and footwear<\/b><\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"71\">\n<p align=\"center\"><b>5.36<\/b><\/p>\n<\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"75\">\n<p align=\"center\"><b>3.91<\/b><\/p>\n<\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"97\">\n<p align=\"center\"><b>4.73<\/b><\/p>\n<\/td>\n<td colspan=\"2\" valign=\"bottom\" width=\"16\">\n<p align=\"center\"><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"259\"><b>\u00a0<\/b><\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"71\">\n<p align=\"center\"><b>\u00a0<\/b><\/p>\n<\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"75\">\n<p align=\"center\"><b>\u00a0<\/b><\/p>\n<\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"97\"><\/td>\n<td rowspan=\"2\" colspan=\"2\" valign=\"bottom\" width=\"16\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"259\"><b>\u00a0<\/b><\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"71\">\n<p align=\"center\"><b>\u00a0<\/b><\/p>\n<\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"75\">\n<p align=\"center\"><b>\u00a0<\/b><\/p>\n<\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"97\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"259\"><b>Housing<\/b><\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"71\"><\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"75\">\n<p align=\"center\"><b>22.53<\/b><\/p>\n<\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"97\">\n<p align=\"center\"><b>9.77<\/b><\/p>\n<\/td>\n<td colspan=\"2\" valign=\"bottom\" width=\"16\">\n<p align=\"center\"><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"259\"><\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"71\"><\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"75\"><\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"97\"><\/td>\n<td rowspan=\"2\" colspan=\"2\" valign=\"bottom\" width=\"16\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"259\"><\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"71\"><\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"75\"><\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"97\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"259\">Education<\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"71\">\n<p align=\"center\">2.71<\/p>\n<\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"75\">\n<p align=\"center\">4.18<\/p>\n<\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"97\">\n<p align=\"center\">3.35<\/p>\n<\/td>\n<td colspan=\"2\" valign=\"bottom\" width=\"16\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"259\">Medical care<\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"71\">\n<p align=\"center\">6.72<\/p>\n<\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"75\">\n<p align=\"center\">4.34<\/p>\n<\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"97\">\n<p align=\"center\">5.69<\/p>\n<\/td>\n<td colspan=\"2\" valign=\"bottom\" width=\"16\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"259\">Recreation and amusement<\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"71\">\n<p align=\"center\">1.00<\/p>\n<\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"75\">\n<p align=\"center\">1.99<\/p>\n<\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"97\">\n<p align=\"center\">1.43<\/p>\n<\/td>\n<td colspan=\"2\" valign=\"bottom\" width=\"16\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"259\">Transport and communication<\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"71\">\n<p align=\"center\">5.83<\/p>\n<\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"75\">\n<p align=\"center\">9.84<\/p>\n<\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"97\">\n<p align=\"center\">7.57<\/p>\n<\/td>\n<td colspan=\"2\" valign=\"bottom\" width=\"16\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"259\">Personal care and\u00a0 effects<\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"71\">\n<p align=\"center\">3.05<\/p>\n<\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"75\">\n<p align=\"center\">2.74<\/p>\n<\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"97\">\n<p align=\"center\">2.92<\/p>\n<\/td>\n<td colspan=\"2\" valign=\"bottom\" width=\"16\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"259\">Household requisites<\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"71\">\n<p align=\"center\">4.48<\/p>\n<\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"75\">\n<p align=\"center\">3.92<\/p>\n<\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"97\">\n<p align=\"center\">4.30<\/p>\n<\/td>\n<td colspan=\"2\" valign=\"bottom\" width=\"16\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"259\">Others<\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"71\">\n<p align=\"center\">1.12<\/p>\n<\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"75\">\n<p align=\"center\">0.99<\/p>\n<\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"97\">\n<p align=\"center\">1.06<\/p>\n<\/td>\n<td colspan=\"2\" valign=\"bottom\" width=\"16\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"259\"><b>Miscellaneous<\/b><\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"71\">\n<p align=\"center\"><b>24.91<\/b><\/p>\n<\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"75\">\n<p align=\"center\"><b>28.00<\/b><\/p>\n<\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"97\">\n<p align=\"center\"><b>26.31<\/b><\/p>\n<\/td>\n<td colspan=\"2\" valign=\"bottom\" width=\"16\">\n<p align=\"center\"><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"259\"><\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"71\"><\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"75\"><\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"97\"><\/td>\n<td rowspan=\"2\" colspan=\"2\" valign=\"bottom\" width=\"16\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"259\"><\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"71\"><\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"75\"><\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"97\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"259\"><b>All Groups<\/b><\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"71\">\n<p align=\"center\"><b>100.00<\/b><\/p>\n<\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"75\">\n<p align=\"center\"><b>100.00<\/b><\/p>\n<\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"97\">\n<p align=\"center\"><b>100.00<\/b><\/p>\n<\/td>\n<td colspan=\"2\" valign=\"bottom\" width=\"16\">\n<p align=\"center\"><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"259\"><b>\u00a0<\/b><\/td>\n<td><\/td>\n<td><\/td>\n<td colspan=\"2\"><\/td>\n<td width=\"9\"><span style=\"font-family: Calibri;font-size: medium\">\u00a0<\/span><\/td>\n<\/tr>\n<tr>\n<td width=\"259\"><\/td>\n<td width=\"71\"><\/td>\n<td width=\"75\"><\/td>\n<td width=\"97\"><\/td>\n<td width=\"7\"><\/td>\n<td width=\"9\"><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span style=\"color: #000000\"><span style=\"font-family: Calibri\">Source:<\/span><\/span><span style=\"color: #000000\"><span style=\"font-family: Calibri\">RBI Annual Report 2010-11<\/span><\/span><\/p>\n<p><span style=\"color: #000000\"><span style=\"font-family: Calibri\">As can be seen from above, food has the highest share in the household expenditure (49.71%), thus making CPI inflation sensitive to food prices. In April 2014, the Reserve Bank of India adopted the combined-CPI as the main policy measure for inflation. Before April 2014, the WPI with new base was used as they key inflation measure in deciding monetary policy.<\/span><\/span><span style=\"color: #000000\">\u00a0<\/span><\/p>\n<p><span style=\"color: #000000\">III. GDP\u00a0Deflator:<\/span><span style=\"color: #000000\">\u00a0<\/span><\/p>\n<ul>\n<li>\n<div style=\"text-align: left\"><span style=\"color: #000000\"><span style=\"font-family: Calibri\">The GDP deflator is released by the Central Statistical Organisation in the National Accounts Statistics. Although it includes the entire spectrum of economic activities, it is available on a quarterly basis with a time lag of two months since 1996. <\/span><\/span><\/div>\n<\/li>\n<li>\n<div style=\"text-align: left\"><span style=\"color: #000000\"><span style=\"font-family: Calibri\">Hence GDP Deflator cannot be used as the main measure of inflation in India in spite of its apparent advantages over other indices.<\/span><\/span><\/div>\n<\/li>\n<\/ul>\n<p><a href=\"http:\/\/www.vskills.in\/certification\/accounting-banking-and-finance\">Click here for government certification in Accounting, Banking &amp; Finance<\/a><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>\u00a0\u00a0 \u00a0\u00a0\u00a0 I.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 WPI:\u00a0 The WPI is considered as one of the\u00a0\u00a0main\u00a0inflation\u00a0measures\u00a0in India, because of its availability at high frequency, national coverage and disaggregated data which facilitate a better analysis of inflation. On 14 September 2010, a new WPI series was released with base 2004-05. A representative commodity basket comprising 676 items was selected and&#8230;<\/p>\n","protected":false},"author":612,"featured_media":25305,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_joinchat":[],"footnotes":""},"categories":[1519],"tags":[1113,1365,1275,1272,1775,1865],"class_list":["post-23253","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-accounting-banking-and-finance","tag-cpi","tag-inflation","tag-macroeconomic","tag-monetary-policy","tag-reserve-bank-of-india","tag-wpi"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>inflation in India<\/title>\n<meta name=\"description\" content=\"What is the state of inflation in India? 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