The government released a second discussion paper on Saturday addressing how free Public Distribution System items should be treated when calculating the Consumer Price Index. The Ministry of Statistics and Programme Implementation seeks feedback from experts, academics, government bodies, state governments, financial institutions, and other stakeholders by Oct. 22. The ministry consulted with national and international experts, the Reserve Bank of India, the International Monetary Fund, and United Nations institutions while developing the proposed methodology.
The base revision process aims to expand price collection coverage, refine methodologies, explore new data sources, and incorporate modern technology into the price collection and index compilation process. The free food grain distribution scheme launched on Jan. 1, 2023, covers 75 percent of the rural population and 50 percent of urban residents, making an accurate reflection in CPI measurements necessary. India's CPI inflation rose to 2.07 percent in August from 1.61 percent in July, while food prices continued declining. The inflation rate remains below the RBI's 4 percent target.
The base revision process aims to expand price collection coverage, refine methodologies, explore new data sources, and incorporate modern technology into the price collection and index compilation process. The free food grain distribution scheme launched on Jan. 1, 2023, covers 75 percent of the rural population and 50 percent of urban residents, making an accurate reflection in CPI measurements necessary. India's CPI inflation rose to 2.07 percent in August from 1.61 percent in July, while food prices continued declining. The inflation rate remains below the RBI's 4 percent target.
