Comparison of Existing and Revised Series of Consumer Price Index

Comparison of weighting diagrams of the existing and revised series of CPI

Ministry of Statistics and Programme Implementation has uploaded on its official portal on 22nd of this month that the comparison of the existing and revised series of Consumer Price Index.

The new and revised consumer price index is based on 2012=100. The first index of revised CPI will be published on 12.2.2015.

We reproduced the press release of the new and revised CPI press release and given below for your information…

Base Year Revision of Consumer Price Index (CPI)

The Central Statistics Office (CSO) releases Consumer Price Indices (CPI) for Rural, Urban and Combined, at State/UTs and all India level, w.e.f. January 2011. The Base Year of this series of CPI is 2010=100 and weighting diagrams are based on the results of Consumer Expenditure Survey (CES) 2004-05.

2. Now the CSO is in the process of revising the Base Year from 2010=100 to 2012=100. The weighting diagrams have been prepared on the basis of the results of CES (2011-12). With this revision, the gap between Price Reference Year (Base Year) and the Weight Reference Year has been minimized. Apart from this, a number of methodological improvements have been introduced in the revised series, which are as follows:

Weighting diagrams have been prepared using the Modified Mixed Reference Period (MMRP) data of CES (2011-12), to make consistent with the international practice of shorter reference period for most of the food items and larger reference period for the item of infrequent consumption/purchased. In the old series (Base Year 2010=100), Uniform Reference Period (URP) data were used.

In the existing series of CPI, COICOP (Classification of Individual Consumption According to Purpose), an international standard classification, is being followed broadly, whereas in the revised series, it would be completely followed, except a few deviations which are necessary for Indian context.

The Geometric Mean, instead of Arithmetic Mean being used in the old series, of the price relatives with respect to base prices would be used to compile elementary/item indices.

In case of PDS items, prices of Antyodaya Anna Yojanna (AAY) have also been included in addition to Above Poverty Line (APL) & Below Poverty Line (BPL) prices being taken in the existing series.

Due to change in the consumption pattern from 2004-05 to 2011-12, the weighting diagrams (Share of expenditure to total expenditure) have changed. A comparison of weighting diagrams of the existing and revised series is given in the table below:

Table: Comparison of weighting diagrams of the existing and revised series of CPI

4. In the CES (2011-12), some of the items of CES (2004-05) were dropped from the schedule and a few new items were added. Market survey was conducted to identify shops, fix specifications and collect prices of the new items. Based on the availability of prices, a few new items have been included in the revised series. At the same time, some of items of the existing series have been dropped, in respect of which, prices have not been reported for quite a long period of time. Accordingly, the number of priced items has changed from 437 to 448 in rural and from 450 to 460 in urban at all India level. The number of priced items varies from State to State. If a particular item has occurred in any State, that item has been considered in the All India item basket. In the revised series, 11 new priced items have been added, without dropping any item, in rural sector at all India level. In case of Urban, 7 priced items have been dropped and 17 new priced items have been added.

5. Adopting the aforementioned improvements in methodologies, the first series (revised) would be compiled for the month of January 2015 and released on 12th February 2015. In order to estimate the old series of CPI, using the revised series, a linking factor would be provided. The year on year inflation rates for each month of 2015 would be compiled and released, with the respective press release, using the Linking Factor. From January 2016 onwards, the inflation rates would be compiled using the actual CPI of the revised series, as the indices for a given month of the year 2015 and 2016.

Source: www.7thpaycommissionnews.in

Meeting held with Hon’ble Minister for Railways

Feedback of the AIRF’s Leadership meeting with Minister for Railways Sh. Suresh Prabhu

A.I.R.F.

All India Railwaymen’s Federation

4, State Entry Road,

New Delhi – 110055

No.AIRF/24(C)

Dated: January 24, 2015

The General Secretaries,

All Affiliated Unions,

Dear Comrades,

Sub: Brief of the meeting held with Hon’ble Minister for Railways.

Yesterday I met Hon’ble Minister for Railways, Shri Suresh Prabhakar Prabhu, and had discussion on various issues, justify from 14:00 to 14:45 hrs.

Once again I tried my level best that the FDI should not be brought in the Railways.

I also expressed my fear that, by taking lot of money, there will be over-capitalization, and since we do not have commercial viable projects, it will be difficult to pay back the liabilities to the investors. Though Hon’ble MR has assured that there will not be any privatization in the Railways, he was still of the view that, for expansion of the railway network, money is required. He also told that, he is trying to take interest-free repayable loan for 35-40 years from the countries, like Australia, China, Japan, Canada or the World Bank.

I handed him over a copy of representation, containing suggestions for Rail Budget 2015-16, not to introduce FDI in the Indian Railways, implementation of various Welfare Schemes announced by the then Hon’ble Minister for Railways, viz. establishing of Medical Colleges and opening of Nursing Colleges and Central Schools and Technical Institutions, “Own Your House Scheme” and provision of Mobile Medical Van for treatment of Railway Staff and their families posted on roadside station, extension of scope of the LARSGESS, improvement in the condition of Railway Colonies, Roads and Running/Rest Rooms, improvement in medical facilities, filling up of Safety Category Posts, extension of facilities of Privilege/Complimentary Passes to both the parents of the Railwaymen,replacement of National Pension Scheme(NPS) with “Old Guaranteed Pension Scheme, absorption of quasi-administrative staff in the Railways, provision of proper infrastructure and manpower while introducing new trains, implementation of recommendations of High Power Committee, appointed by the Ministry of Railways, under the chairmanship of Shri D.P. Tripathi, to review duty hours of the Running and other Safety related categories of staff and also provision of proper Pathway for the Trackmen for performing their duties efficiently and safely.

I also handed him over a copy of our suggestions to increase productivity of the Indian Railways as also copies of our letters handed over to High Level Railway Restructuring Committee, constituted under the chairmanship of Shri Bibek Debroy and High Level Committee, constituted to identify the factors, issues and avenues for improving financial health of the Indian Railways, under the chairmanship of Shri D.K. Mittal.

Chairman, Railway Board was also present during course of meeting, and the Hon’ble MR told him that, the important issues raised by the Federation(AIRF) for inclusion in Rail Budget 2015-16 should be kept in view, particularly provision of proper budget for maintenance of Railway Colonies.

He also promised for better and proper communication with the organized labour in all the times to come, and also instructed the CRB to ask the MS to regularly have meetings with the federations in the committee.

Yours faithfully,

sd/-

(Shiva Gopal Mishra)

General Secretary

Source: www.7thpaycommissionnews.in