Question : New Consumer Price Index

(a)whether constant increase in the Consumer Price Index (CPI) level is being registered during the last few months of the year 2015-16;
(b)if so, the details in this regard along with the reasons therefor;
(c)whether the Government is considering to prepare new CPI to made
certain reforms in the old system for measuring the price index;
(d)if so, the details thereof along with the extent of representation each factor would be given in the new CPI and the basis thereto; and
(e)the additional benefit likely to be accrued or a result thereof?

MINISTER OF STATE (IC) FOR LABOUR AND EMPLOYMENT
(SHRI BANDARU DATTATREYA)

(a) & (b): Yes, Madam. Details are at Annexure. The increase in the Consumer Price Index (CPI) level is due to increase in the prices of commodities of the consumption basket, specially food items.
(c) & (d): Yes, Madam. Labour Bureau initiated an exercise in September, 2013 to update the base of the Consumer Price Index for Industrial Workers (CPI-IW) from the existing base 2001=100 to a more recent period.
Contd..2/-

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The target population for the existing CPI (IW) series is working class families of industrial workers engaged in seven sectors, namely Factories, Mines, Plantations, Railways, Public Motor Transport Undertakings, Electricity Generating & Distributing Establishments and Ports & Docks. Coverage of New CPI-IW series is retained at these seven sectors. Two additional sectors namely Handloom and Construction are being covered only on experimental basis and will not form part of the main index series.

The employment of industrial workers registered an increase of 15% since the last survey of 1999-2000 in which 78 centres located in 24 states/UTs were covered. Considering this, coverage of centres in the New Series has been increased to 88 centres which are located in 28 states/UTs.

Coverage in terms of markets has been increased from the 289 markets in the ongoing series to 317 markets in the new series.
(e): The activity will result in compilation of more representative, relevant and reliable series of Consumer Price Index Numbers, inter-alia, by capturing latest consumption pattern of the target group i.e., Industrial Workers.
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