The changes ensure that payments such as dearness allowance or pensions, that are linked to the CPI, will be more closely based on the true consumption baskets of households.
First inflation readings under the revised CPI framework comes in at 2.75%, with food inflation at 2.13 percent, as MoSPI expands market coverage & updates consumption weights.
New CPI series will take 2024 as base year, will provide more accurate measure of inflation, spending on digital services. Expected to enhance representation and reliability, says Saurabh Garg.
Household Consumption Expenditure Survey shows urban-rural gap has narrowed, particularly at lower levels of consumption, implying effectiveness of govt policies in improving rural incomes.
RBI has retained its inflation projection at 5.4% for the current year. Uncertainties in food prices and volatility in global crude oil prices continue to keep 4% target out of reach.
Indian Council of Applied Economic Research study says bans on export of wheat & rice were ‘knee-jerk’ reactions. Govt should adjust its trade policy, not sell at prices lower than MSP.
Food has an outsized weightage in Consumer Price Index, but education and health too little. This is because CPI is based on spending patterns of 'average Indian' from 12 years ago.
While US & Indian officials have signaled that a deal was within reach, talks have dragged on amid disputes over tariffs, market access & protections for politically sensitive sectors.
Under the agreement, the loitering munitions will be offered to the Indian Army as part of efforts to address what the companies described as an ‘urgent requirement’.
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