The new consumer price indices set to debut in January will be compilations of indices for states that reflect the price trends prevailing in the country accurately, helping policy formulation and targeted intervention. Each state will have two consumer price indices, one for rural and another for urban areas. These CPI rural and urban will be added up to arrive at urban and rural retail indices at the national level. These...

Food inflation will defy government policies to remain in high single-digit levels in the long run, unless there is a change in an overwhelming bias among farmers towards staples such as wheat and rice, say economists and policymakers. A steady growth in population and rapidly rising income levels are adding to inflationary pressure at a time when agricultural productivity is showing a decline. A major reason is that the agriculture...

Tight money policy means more capital inflows: ADB Lower middle class worst affected by inflation Infrastructure development, farm productivity can help With the Wholesale Price Index (WPI)-based overall inflation still hovering at around 10 per cent, the Asian Development Bank (ADB) on Thursday said that it was likely to scale up its inflation forecast for India by the end of September. Speaking to the media after the launch of the ADB's flagship annual statistical...

Does the government really have any clue about how to go about controlling prices? A quick survey of statements made by everybody from the prime minister downwards shows a picture of groping in the dark, while handing out empty assurances from time to time. What is worse, it's all smoke and mirrors for the public. Coming as it does from a government that is loaded with top-notch economists, it is...

Work on a new base year will start the moment the government starts releasing key economic data such as the Wholesale Price Index (WPI) and the Index of Industrial Production (IIP) with 2004-05 as the reference point within a few months. The National Statistical Commission (NSC), under C. Rangarajan, has recommended that the base year be updated every five years. Officials in the ministry of statistics and programme implementation (Mospi) say...