TS to compile district-level Consumer Price Index

  • First in India, Odisha to follow state example

Hyderabad: The Centre has approved the proposals of Governments of Telangana and Odisha for compilation of sub-State Consumer Price Indexes (CPI) in the respective states with base year 2017.

The Telangana State becomes the first in India to prepare district-wise weighing diagram for compilation of district-wise CPI (rural, urban and combined) and also to compile CPI (R/U/Combined). Telangana is the first state in the country to attempt District-Level Consumer Price Index. Odisha and other states are following suit now. 

Union Ministry of Statistics and Programme Implementation (MoSPI) is asking all states to emulate Telangana. A training programme was conducted on Friday at CESS for all CPOs and field staff of Planning Department on this that was attended by B.P. Acharya, Principal Secretary, Planning, D.K. Sinha, Director, MoSPI, and other senior officers.  Consumer Price Indices (CPI) measure changes over time in general level of prices of goods and services that households acquire for the purpose of consumption.

The Central Statistics Office (CSO) of the Ministry of Statistics and Programme Implementation has started compiling new series of CPI for the entire urban population, CPI for the entire rural population,  CPI (rural), which would reflect the changes in the price levels of various goods and services consumed by the urban and rural population. These new indices are compiled at State/UT and all-India levels with base 2011-12.

One of the advantage of these indices is that the base year is revised once in five years to capture the latest consumption items in the market without putting any additional expenditure on the government. This will reflect the true picture of price indices. 

 Presently, compiling index is based on six centres, which does not reflect the price trends in the entire state. Similarly, retail prices are collected from 40 centres. But the data is not sufficient to effective monitoring of price situation in the state in view of reorganization of districts. A total number of 1183 villages have been selected at all India level out of which 20 villages in Telangana will be covered for collection of prices for CPI (rural) with two villages in each district/division. 

-NSS

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