Poochandi

July 13, 2010

A new system of inflation measurement, under which price changes of about 250 extra items would be covered, is likely to be rolled out by the government on August 14.

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.