New data to feed CPI, IIP in the works

NEW DELHI: The government is planning to revise some of the key statistical indices, including the consumer price index (CPI) and the index for industrial production (IIP) to make them relevant with the changing socio-economic environment.

“The new IIP is under examination. It has been sent to renowned economists for their comments. We will release it after receiving their comments and incorporating necessary changes,” Central Statistical Organisation (CSO) additional director-general P K Ray said on Thursday.

The new IIP will have more than 800 item groups compared to about 400 in the earlier index, Mr Ray said, adding that “the base year for the new IIP will be 1999-2000 against 1993-94 for the existing one.” He said the new IIP will exclude items that are not in vogue and include those which have gained currency in the recent past. Weightage to the items would be given in accordance to their share in the gross domestic product (GDP), he added.

In addition to the new IIP, the government also plans to come out with two indices for small scale industry (SSI) and consumer price index for the urban areas (CPU) replacing the CPI (urban non-manual employees) index.

Commenting on the proposed CPI for urban area, country’s chief statistician Pronab Sen said it will help in measuring price rise in urban areas. Asked if the WPI was reflecting the true state of price rise, Mr Sen said: “It is a fact that WPI does not reflect consumer prices. One needs to look at CPI, which is announced every month, to see price behaviour at the consumer end.