When did India shift from WPI to CPI?

When did India move from WPI to CPI?

It is only recently, in April, 2014, that the government made a bold and well-thought-out decision to move to the CPI to measure the inflation rate in the Indian economy.

Why India switched over to CPI from WPI?

For past many years, India used WPI to measure the inflation. When Raghuram Rajan was at the helm at the RBI, he started using CPI to measure the inflation. … There are only few countries that use WPI while more than 150 countries use CPI as an indicator of price change.

When was Consumer Price Index introduced India?

The current CPI(UNME) series with base 1984-85, introduced in November 1987, derives the weighting pattern from the family living survey conducted during 1982-83 in 59 selected urban centres. All-India weights of CPI(UNME) at group and sub-group levels are given in Annexe 11.2.

Why WPI is not used in India?

Separate services sector input/output price indices are required to deflate services sector GDP for which WPI is anyway not appropriate. The attention of authorities concerned is called for, to resolve issues relating to the GDP deflator in India, as WPI has lost some of its usefulness.

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Does RBI use WPI or CPI?

Earlier, RBI had given more weightage to Wholesale Price Index (WPI) than CPI as the key measure of inflation for all policy purposes. …

How is WPI different from CPI?

While WPI keeps track of the wholesale price of goods, the CPI measures the average price that households pay for a basket of different goods and services. Even as the WPI is used as a key measure of inflation in some economies, the RBI no longer uses it for policy purposes, including setting repo rates.

WHO releases CPI WPI?

WPI data is published by the Office of Economic Adviser, Ministry of Commerce and Industry, while CPI data is published by the National Statistical Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI). The base year for WPI is 2011-12 while the base year for CPI is 2012.

Does RBI adopted WPI?

The weightage of food in Consumer Price Index (CPI) is higher than that in Wholesale Price Index (WPI). … Reserve Bank of India has now adopted WPI as its key measure of inflation and to decide on changing the key policy rates.

WHO publishes WPI in India?

The WPI is published by the Economic Adviser in the Ministry of Commerce and Industry.

What is the CPI for 2021?

Consumer Price Index rose 5.3 percent over the year ending August 2021. The Consumer Price Index for All Urban Consumers rose 5.3 percent for the 12 months ending August 2021, a smaller increase than the 5.4-percent rise for the year ending July.

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What was the CPI in 2007?

Consumer prices advanced at a seasonally adjusted annual rate (SAAR) of 5.6 percent in the fourth quarter of 2007. This followed increases in the first three quarters at annual rates of 4.7, 5.2, and 1.0 percent, respectively. For the 12 month period ended in December, the CPI-U rose 4.1 percent.

What is the base year for WPI in India?

The wholesale price index (WPI), the widely tracked inflation indicator, is set for an overhaul with the base year being revised to 2017-18 from 2011-12 and the possibility of bringing within its tent fresh items to capture emerging consumption patterns.

Which is greater WPI or CPI?

The WPI data comes right after the retail (CPI) inflation scaled a four-month peak of 5.52 per cent in March. In recent years, the WPI and CPI have shown a degree of dissonance, given that the WPI has a higher weight of manufactured goods and the CPI has a greater constitution of food items.

WHO calculates WPI?

In India WPI is also known as the headline inflation rate . In India, Office of Economic Advisor (OEA), Department of Industrial Policy and Promotion, Ministry of Commerce and Industry calculates the WPI.