MoSPI proposes methodology to reflect free ration in Consumer Price Index compilation

Consumer Price Index (CPI) measures changes in the general level of retail prices of a representative basket of goods & services consumed hy households

- OUR CORRESPONDENT

The Ministry of Statistics & Programme Implementation (MoSPI) has proposed a methodology to appropriately reflect free food grains distributed through PDS in the CPI, which is used in monetary policy, computing cost of living, and formulation of social welfare schemes.

The Consumer Price Index (CPI) measures changes in the general level of retail prices of a representative basket of goods and services consumed by households. The basket includes items across major categories such as food and beverages, clothing, housing, education, healthcare, and transportation.

The ministry is conducting the base revision of the CPI. The process includes enhancing coverage of price collection, refining existing methodologies, exploring new data sources and effective use of modern technology in the price collection and index compilation.