The government is likely to introduce two new consumer price indices (CPIs) for tracking inflation by January 2011, to better reflect the consumption pattern and price movement at the retail level.
The two new indices, one each for the rural and urban areas, would be calculated on a base year of 2004-05 and would be released on a monthly basis. “The first set of CPI numbers will be from the month of January 2011, that will be two CPIs — CPI Urban and CPI Rural,” Chief Statistician T C A Anant said.
He said that the new consumer price index will not replace the existing ones and is only an addition to the existing indices. “The data collection started last year. The current set for four CPIs will continue, this is simply an additional index,” Anant said.
He added, however, that the new indices would gradually replace the existing ones. Currently, there are various CPIs, including Agriculture Labour, Rural Labour, Industrial Worker and Urban Non-Manual Employees. They are calculated on different base years. While CPIs for agriculture and rural labours are calculated on the base year 1986-87, that for industrial worker is on the 2001 base year.
