GOVERNMENT OF INDIA

MINISTRY OF FINANCE

LOK SABHA

UNSTARREDQUESTION NO: 1694

ANSWERED ON: 23.03.2012

NEW METHODOLOGY FOR MEASURING INFLATION 

(a) whether the Government has adopted a new methodology for measuring inflation in the country since January 2012; 

(b) if so, the facts in this regard alongwith the difference between the old and new methods and the details of its possible benefits; and 

(c) the increase in food inflation in January 2012 vis-a-vis last year as per the new methodology alongwith the reasons of this increase? 

ANSWER

(a) & (b) Central Statistical Office (CSO) has launched a new series of Consumer Price Indices (CPI) base 2010 100 beginning January, 2011. The new series provide indices separately for rural, urban and All India with a further disaggregation covering all States and Union Territories. Compared to the sector specific CPIs which are separately compiled for Industrial Workers, CPI (IW), Agricultural Labourers, CPI (AL) and Rural Labourers, CPI (RL), the new CPI better reflects the consumer prices and has a wider coverage. 

 (c) Annual Inflation based on new CPI series is available only from January 2012. Inflation for corresponding months of previous year therefore is not compiled. Annual inflation rates of January and February 2012 for rural, urban and all India in respect of food, non-food and total are indicated in the table below.   

Food#				Non-food			Total



	Jan-2012	Feb-2012	Jan-2012	Feb-2012	Jan-2012	Feb-2012



Rural	4.14        	6.33	   	11.48       	10.99	    	7.28		8.36

	    
Urban	3.92		7.21	   	10.79       	10.72	    	8.25		9.45



All	4.06		6.65	   	11.02       	10.83	   	 7.65		8.83
India	    

# Excluding intoxicants. 

Note: February 2012 figures are provisional