Welfare schemes have reshaped the retail prices that matter to people
2 months, 2 weeks ago

Welfare schemes have reshaped the retail prices that matter to people

Live Mint  

The Union ministry of statistics and programme implementation has recently put out a discussion paper on ‘The treatment of PDS items and other free social transfers in consumer price index compilation.’ First, the background: In January 2023, the government announced a programme to supply free foodgrains to around 800 million households covered under the National Food Security Act. One, how to account for the reduction in price of Public Distribution System items from a positive value to zero in the ongoing series; and two, how to treat free PDS items in the proposed new series after the ongoing base-revision exercise is done. Insofar as the treatment of free foodgrains for the future series is concerned, the paper cites the International Monetary Fund manual on CPI compilation, which recommends excluding from the index items that are provided free by the government or non-profit institutions. The issue of free distribution of foodgrains raises a larger concern when it comes to CPI compilation and household consumption patterns.

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History of this topic

Experts to advise if free food comes under CPI
2 months, 3 weeks ago

Experts to advise if free food comes under CPI

Hindustan Times  

NEW DELHI The government wants to know whether free food distributed to nearly 800 million beneficiaries under the National Food Security Act 2013 should be kept out of inflation calculation, as it is in the process of creating a new, updated consumer price index, the gauge that measures changes in retail prices. The ministry of statistics and programme implementation has …

DC EDIT | First sign of price relief; up to govt to insulate economy
2 years, 4 months ago

DC EDIT | First sign of price relief; up to govt to insulate economy

Deccan Chronicle  

After three months of spike, retail inflation or the Consumer Price Index softened to 6.77 per cent in October. The price rise among cereals, in particular, which has nearly 10 per cent weightage in the retail inflation, remained elevated at 12 per cent, because of irregular monsoon distribution and unseasonal rain disrupting supply. Inflation in energy products and clothes, which …

Retail inflation rises to 7.8%, highest in 8 years
2 years, 10 months ago

Retail inflation rises to 7.8%, highest in 8 years

Hindustan Times  

Retail prices grew at 7.8% in April, the highest since the Narendra Modi-led National Democratic Alliance government assumed power in May 2014, squeezing household budgets, potentially affecting consumer confidence, and setting the stage for more monetary action by the Reserve Bank of India’s Monetary Policy Committee which raised the rate last week to combat spiking inflation. Experts believe that this …

Food prices still rising and will stay high for ‘some time’, top retailer warns
2 years, 10 months ago

Food prices still rising and will stay high for ‘some time’, top retailer warns

The Independent  

Get the free Morning Headlines email for news from our reporters across the world Sign up to our free Morning Headlines email Sign up to our free Morning Headlines email SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy Food prices will remain high for "some time" and the …

Rising inflation is a supply-induced problem this year
4 years, 5 months ago

Rising inflation is a supply-induced problem this year

Live Mint  

Consumer price inflation for September was at 7.34%—the fifth consecutive CPI print above the MPC’s target of 2-6%. A surge in food prices are the primary reason for the sharp increase in food inflation, which has demonstrated an upward trajectory of 7.87% in June, 9.27% in July, 9.05% in August and finally 10.68% in September. The high share of food …

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