2004-05 is new base year for inflation calculation.Byline: ANI
New Delhi New Delhi (dĕl`ē), city (1991 pop. 294,149), capital of India and of Delhi state, N central India, on the right bank of the Yamuna River. , July 31 (ANI): Union Finance Minister Pranab Mukherjee Pranab Kumar Mukherjee (Bengali: প্রণব কুমার মুখার্জী on Friday announced that 2004-05 as the base year for the calculation of inflation of wholesale price index (WPI WPI - Worcester Polytechnic Institute ) series in the country.
Replying to a question on price indices in the Lok Sabha The Lok Sabhha (alternatively titled, the House of the People, by the Constitution of India) is the lower house in the Parliament of India. The Lok Sabha also stands for the term of the lower house between consecutive parliamentary general elections in India. , Mukherjee said the WPI series is being upgraded with base year 2004-05 in lieu of the existing one with base year 1993-94.
With the advancement of the base year and probably a revision of commodities in the index and their weights, it is expected that the index would provide a better picture of the current scenario of prices.
Principal economist of the rating agency Crisil D.K. Joshi felt that the WPI will now become more representative of today's reality and it would come along with the revision in commodities and weights
Joshi also expressed doubts about the inclusion of the services in the index by the government; in that case people would have to continue depending on other indices like the consumer price index.
But Mukherjee cleared the air by stating the WPI price data collection completely excludes the services sector. (ANI)
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