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Govt may clear plan on monthly inflation data tomorrow

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Press Trust of India New Delhi
Last Updated : Jan 20 2013 | 11:59 PM IST

The government is likely to clear tomorrow a proposal suggesting release of inflation data on monthly basis and not every week for bulk of the items tracked by the Wholesale Price Index (WPI).

The Cabinet Committee on Economic Affairs (CCEA) is expected to take up tomorrow the Commerce and Industry Ministry's proposal, which was finalised on the recommendations of a working group headed by Abhijit Sen, member, Planning Commission.

Sources in the Commerce and Industry Ministry said if the proposal is approved by the CCEA, the shift in data release would take place from December.

In the first phase, data of only manufactured items, which have a weightage of 63.75 per cent on the WPI, would be released on the monthly basis.

On a parallel track, weekly inflation figures would be given for the food articles and fuels.

The changes in the frequency of data release are being brought in line with the global practices, an official said.

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On Thursday, Planning Commission Deputy Chairman Montek Singh Ahluwalia had also pressed for following the international practices on data release.

"We have been arguing for the past one year to get rate of monthly inflation. You know weekly is just not sensible," Ahluwalia had said.

Nowhere in the world there is weekly release of inflation data, Ahluwalia added.

Earlier Finance Minister Pranab Mukherjee had said, information on weekly prices of manufactured products is highly meagre.

The government is also planning to introduce the new base year for calculation of wholesale price index series. The WPI series is being upgraded with base year 2004-05 in lieu of the existing one with base year 1993-94.

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First Published: Oct 18 2009 | 2:58 PM IST

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