Govt defends separate index for food articles
New Delhi: With wholesale price inflation
not reflecting true picture of food prices, the government
today justified the introduction of separate index numbers for
primary products and manufacturing items, saying the new
mechanism give better reflection of price movements.
"So this change enables everyone to know reality...,"
Industrial Policy and Promotion Secretary Ajay Shankar told
reporters.
He said the idea behind coming up with separate inflation
numbers for primary articles -- items found in raw form -- and
manufactured products is that prices of these two categories
move somewhat independently at times.
"So, the results which have come out has shown that food
inflation has been high whereas wholesale price index was
quite low in the preceding month," the official said.
The government has for the first time come out with
separate wholesale price index numbers for primary articles,
fuels, and will issue another index on a monthly basis for all
commodities, including manufacturing, next week.
Shankar said inflation numbers to be released on November
12 will be based on old time series, that is based on 1993-94
prices.
He said the new series will be out very soon. The new
series will be based on 2004-05.
Bureau Report