New inflation index likely from August 14
July 13, 2010
The present monthly inflation measurement system, based on the wholesale price index, reflects the price variations of 435 items.
The number of items would now go up to 685 and include a host of new products, including consumer goods like mobile phones and LCD televisions, sources said.
Dated items such as typewriters and video cassette recorders (VCRs) would not find a place in the new inflation measurement mechanism.
The Committee of Secretaries (CoS), headed by Cabinet Secretary K M Chandrasekhar, is likely to give a final shape to the new index next week. The base year of the new index would also be changed from 1993-94 to 2004-05.