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Factors Involved in Measuring Inflation Part 3
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Further to his last lesson, here Ayussh Sanghi explains one about the consumer price index for agricultural labourers. Then he explains consumer price index for rural labourers. He also sheds light upon the detailed analysis of WPI and CPI.

Ayussh Sanghi is teaching live on Unacademy Plus

Ayussh Sanghi
Passionate Educator - CSE / Other Govt Exams [Peep into my Unacademy Plus Courses & experience awesome learning.]

U
Unacademy user
thank you sir i was searching it.
Kapil Kathpal
2 years ago
:)
where is contributing option?
BASE YEAR COMMODITIES DATA FREQUENCY PREPARED BY WPI 2011-12 676 Monthly Office of Economic Adviser, DIPP,MoC&I CPI (IW) 2001 260 Monthly & 1 month time lag Labour bureau, MoL&E CPI (AL) 1986-87 260 Monthly & 3 weeks time lag Labour bureau, MoL&E CPI (UNME) 1984-85 146-365 Monthly & 2 week time lag Labour bureau, MoL&E CPI (RW) 1983 260 Monthly & 3 weeks time lag Labour bureau, MoL&E
Priyanka Sharma
3 years ago
Base year for wpi is 2004-05
thanks for correcting
Aayush Shukla
2 years ago
wpi base yr is 2011 2012
B
Computed by - WPI by the Office of the Economic Adviser in Ministry of commerce & Industry, GOI. 1. Consumer Price Indices (CPI) released at national level are: I. CPI for Industrial Workers (IW) by the Labour Bureau in the Ministry of Labour and Employment. II. CPI for Agricultural Labourers (AL) / Rural Labourers (RL) by the Labour Bureau in the Ministry of Labour and Employment. III. Consumer Price Index for Urban Non - Manual Employees, CPI (UNME) by Central Statistics Office (CSO) in the Ministry of Statistics and Programme Implementation. IV. CPI (Rural/Urban/Combined) by Central Statistics Office (CSO) in the Ministry of Statistics and Programme Implementation. Release basis - WPI 1. Earlier released on weekly basis for Primary Articles and Fuel Group. 2. Since 2012, this practice has been discontinued. Currently, WPI is released monthly. So 12 WPIs in a year. CPI 1. Monthly basis: for urban, rural, all India. 2. Annual: with lag of one month. 3. State/UT’s separate CPIs released only if they provide 80% of the necessary data. Base year WPI Current WPI Base year is 2004-05 = 100. CPI 2012 currently. This is one reason for increasing difference between CPI and WPI in recent times.
CPI IW base year is now changed to 2013-14
Ayussh Sanghi
2 years ago
These lessons were made over 3 years ago. Thanks for the updation anyways.
Sreejith K R
2 years ago
You are welcome
WPI: EA, DIPP, MoC; 2011-12; Monthly CPI (IW): Labour Bureau, MoL; 2001; Monthly CPI (UNME): CSO; 1984-85; Monthly CPI (AL): Labour Bureau, MoL; 1986-87; Monthly CPI (RL): Labour Bureau, MoL; 1983; Monthly
  1. Inflation BY AYUSSH SANGHI How to measure Inflation and Analysis? - Part 4.10


  2. ABOUT ME >Passionate about Teaching >Taught at most reputed Civil Services Institutes >CA, Lawyer Follow me on: https://unacademy.in/user/ AyusshSanghi


  3. Series of Consumer Price Index (CPI) We follow four distinct series of CPI that are used for monitoring retail price movements on a monthly basis. . We follow four distinct series of CPI that are used for monitoring retail price These are: Consumer Price Index for Industrial Workers, CPI (IW) Consumer Price Index for Agricultural Labourers, CPI (AL) and Consumer Price Index for Urban Non - Manual Employees, CPI (UNME) . Consumer Price Index for Industrial Workers, CPI (IW) . Consumer Price Index for Rural Workers, CPI (RW)


  4. CPI (Agricultural Labour) The Consumer Price Index for Agricultural Labourers (CPI-AL) has 1986-87 as its base year with 260 commodities in its basket. The data is collected with a monthly frequency and has three weeks time lag. This index is used for revising minimum wages for agricultural labourers in different states.


  5. CPI (Rural Worker) There is yet another Consumer Price Index for the Rural Labourers (CPI-RL) with 1983 as the base year, data is collected on monthly frequency with three weeks' time lag, and its basket contains 260 commodities.


  6. Analysis of WPI and CPI WPI is used for measuring the rate of inflation. Main distinction between the two is that the WPI is purely a commodity index and does not take into account services for measuring inflation, whereas CPI (IW) includes both commodities and services, though the number of commodities covered by it is much smaller as compared to the WPI.


  7. Analysis of WPI and CPI Besides, CPI (IW) is based on retail prices and hence captures the impact of prices of selected essential goods and services on the household budget.


  8. Analysis of WPI and CPI . As compared to the WPI, the CPI has much larger weightage of primary articles, which is as high as 57 per cent. This implies that impact of food inflation is reflected much more prominently irn CPI than in WPI as WPI gives just 20 percent weightage to these articles. From above it can be inferred that seasonal fluctuation in the wipe,s of these commodites has relaively leser nftuence on