New CPI Inflation Series: MoSPI Seeks Stakeholder Feedback

In a crucial step towards revamping the inflation index, the Ministry of Statistics and Programme Implementation (MoSPI) is preparing to release a new Consumer Price Index (CPI) inflation series in February next year. During an interview, Secretary Saurabh Garg highlighted the importance of stakeholder engagement in this process. The ministry will publish discussion papers and organize conferences to outline the changes in methodology, ensuring transparency and clarity.

The decision to update the CPI comes on the heels of recent GST cuts, which have raised questions about potential impacts on inflation. Garg mentioned that these cuts will have a one-time effect on CPI, reflected in future inflation numbers. However, the ministry will continue to compare CPI to previous years to assess incremental changes.

In light of the evolving economic landscape, MoSPI is keen on understanding the implications of the GST reductions on consumption patterns. Although the ministry is not conducting specific analyses of household consumption, they are monitoring industrial production indicators to gauge the overall economic impact.

As the revised CPI series approaches, discussions about the weightage of various items in the index are underway. Garg confirmed that discussions with stakeholders will be integral to finalizing these weights, with emphasis on transparency in the process. Conferences will be held in major cities like Delhi, Mumbai, and Chennai to engage data users and address any doubts regarding the methodology.

Furthermore, the ministry is exploring innovative data collection methods, including collaborating with e-commerce platforms to scrape price data legally. This approach aims to enhance the accuracy of the CPI while keeping data providers informed about the process. Garg emphasized the importance of transparency in data collection, ensuring that stakeholders are aware of how their data is utilized.

In conclusion, the MoSPI's initiative to involve stakeholders in the CPI revision process highlights a commitment to transparency and accuracy in economic data. As the ministry prepares to release the new CPI series, the engagement of various stakeholders will play a vital role in shaping the future of inflation measurement in India.