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.