Poor data inflow may delay new monthly WPI
The new monthly Wholesale Price Index (WPI) which was expected to be released early next year might be delayed due to poor data inflow.
By Anto Antony, ET Bureau |
NEW DELHI: The new monthly Wholesale Price Index (WPI) which was expected to be released early next year might be delayed due to poor data inflow.
According to officials associated with the sourcing of price quotations for new WPI, the flow of price samples is much lower than the expectation. The base year for the new WPI will be 2004-05.
The department of industrial policy and promotion���s attempt to source price quotations from more than 10,000 producers to bring more accuracy and credibility to the WPI is facing rough weather on account of poor response.
National Sample Survey Organisation, which is in charge of collecting data, is not expecting an improvement in data inflow till the Collection of Statistics Bill 2007, is approved by the Parliament. This bill will make it mandatory for industries and other producers to provide statistical data to the government.
The inflow of price quotations is lowest in the manufacturing segment, which has a heavy weight in the WPI. The problem of poor inflow of data is not new. An official pointed that even in the current WPI which has 1993-94 as the base year, the data inflow was poorest in the manufacturing segment as manufacturers and factories were least compliant.
The new WPI will capture price movements of 1,117 products. The commission chaired by Planning Commission Abhijit Sen had recommended the monthly release of WPI data to give inflation numbers more accuracy.
The current WPI tracks price movements in 435 items based on 2,000 price quotations and the base year is 1993-94.
In the present scenario, when the revised figures of the provisional WPI numbers come out, 30 to 50 basis point hike has become a common practice.
According to officials associated with the sourcing of price quotations for new WPI, the flow of price samples is much lower than the expectation. The base year for the new WPI will be 2004-05.
The department of industrial policy and promotion���s attempt to source price quotations from more than 10,000 producers to bring more accuracy and credibility to the WPI is facing rough weather on account of poor response.
National Sample Survey Organisation, which is in charge of collecting data, is not expecting an improvement in data inflow till the Collection of Statistics Bill 2007, is approved by the Parliament. This bill will make it mandatory for industries and other producers to provide statistical data to the government.
The inflow of price quotations is lowest in the manufacturing segment, which has a heavy weight in the WPI. The problem of poor inflow of data is not new. An official pointed that even in the current WPI which has 1993-94 as the base year, the data inflow was poorest in the manufacturing segment as manufacturers and factories were least compliant.
The new WPI will capture price movements of 1,117 products. The commission chaired by Planning Commission Abhijit Sen had recommended the monthly release of WPI data to give inflation numbers more accuracy.
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The current WPI tracks price movements in 435 items based on 2,000 price quotations and the base year is 1993-94.
In the present scenario, when the revised figures of the provisional WPI numbers come out, 30 to 50 basis point hike has become a common practice.
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