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Policymakers in India may have to wait until 2026 for an updated retail inflation series that not only accounts for changes in consumer behaviour but also tackles flaws with the indexu2019s design and computation.
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HOME CAMPAIGNS DIGITAL MEDIA MARKETING STARTUPS ECONOMIC MARKETS FUND RAISING Top Stories Tic Tac Collaborates with Yashraj Mukhate to Launch the #TicTacLife Campaign The RBI may have to wait until 2026 for an Updated CPI In?ation Series Home - Economic - The RBI may have to wait until 2026 for an Updated CPI In?ation Series Search here ... Latest Update RECENT POPULA R COMMO N April 19, 2023 Alia Bhatt’s Sawalia avatar to launch Halo Paints, assist Ayushman Khurrana in JSW’s new campaign Economic April 19, 2023 April 19, 2023 The RBI may have to wait until 2026 for an Updated CPI In?ation Series By Gurpreet Kaur 3 hours ago 0 55 3 minutes read Facebook Twitter April 19, 2023 Policymakers in India may have to wait until 2026 for an updated retail in?ation series that not only accounts for changes in consumer behaviour but also tackles ?aws with the index’s design and computation. Elon Musk Announces the Development of the “TruthGPT” Chatbot The sharp increase in consumer price index (CPI) in?ation in January to 6.52 per cent, caused by a change in the statistics ministry’s usual computation methodology forced by free foodgrain distribution through the Public Distribution System (PDS), shed light on one of the many issues causing problems with the country’s in?ation measurement. April 19, 2023 IT Minister KTR Invests in a School-Based Company to Bridge the Digital Gap The grains issue is the most recent in a string of statistical anomalies that have in?uenced monetary policy choices. And these cannot be resolved fast. Increases in housing and HRA Housing in?ation, as measured by the CPI, increased from 4.7 per cent in June to 8.25 per cent by December 2017, after the implementation of the 7th Pay Commission’s recommendation to increase central government employees’ home rent allowance (HRA) by 105.6 per cent beginning in July 2017. Most Viewed Because home rent accounted for 9.51 per cent of the CPI basket, CPI in?ation accelerated from a record low of 1.46 per cent in June 2017 to 5.21 per cent in December 2017. Given that the impact of the HRA raise on in?ation was statistical in nature, the Monetary Policy Committee (MPC) chose to overlook the increase in in?ation at the time. HOME February 15, 2023 CAMPAIGNS DIGITAL MEDIA MARKETING STARTUPS ECONOMIC MARKETS Adani Group equities are the Subject of This Week FUND RAISING However, the HRA increase simply highlighted underlying issues with how the CPI analyses housing costs. Employer-provided housing accounts for up to 1.3 per cent of the CPI basket, which is greater than the combined weight of an onion and tomato. And the rent for government-provided housing is determined March 3, 2023
VCs’ ?xation with start-ups’ topline, says CEO of Infosys by who lives there and their HRA. If they measure an increase or decrease in rent when a tenant changes in a privately rented house, such changes re?ect actual market rent movements. However, movements in government housing rent due to changes in residents have no relationship to actual changes in rental prices an RBI staff document stated in November 2018. January 31, 2023 IHC investment leads Adani Enterprises shares to boost by 5% February 20, 2023 Adani Enterprises Shares Must Increase by up to 410% to Reach their 52- week Highs February 27, 2023 M-cap of the Adani Group falls below the Rs 7 lakh crore threshold Aggregation is Important The latest cereals event was brought to light when analysts noticed a difference in the CPI cereals index. The grains sub-group index was lower when calculated as the weighted average of its 20 components than when released by the statistics ministry. This disparity is related to how the index was created: horizontally by the ministry and vertically by economists. March 3, 2023 Buy Adani Group Stocks, Advises ICICIdirect The statistics ministry creates higher-level indices – sub-group and above – for each state, union territory, and rural and urban sectors using the indices for each of the 299 items in the CPI basket. This is an example of vertical aggregation. Most Reviews To calculate the all-India index for these goods, the index for each item across states, union territories, and rural and urban sectors is totalled using spending weights. This is known as horizontal aggregation. RECENT POPULA R COMMO N Meanwhile, after the CPI data is released, economists aggregate vertically from bottom to top – from item to sub-group to group to the all-India index. Because of this variation in the aggregate, a signi?cant divergence in the grains index was discovered in January. Before grains, there was the fuel index, which caused comparable problems as early as mid-2021. April 19, 2023 Alia Bhatt’s Sawalia avatar to launch Halo Paints, assist Ayushman Khurrana in JSW’s new campaign Because in?ation estimates are created via vertical aggregation, the type of aggregation is important. “…given the way the CPI is constructed, there are bound to be differences between headline in?ation computed and published, even when at an item level index forecast and published largely tally – the January and February 2023 CPI print was a recent example, RBIstaffwrote in a March paper. Because monetary policy must be forward-looking, the MPC bases interest rate decisions on the RBI’s estimates. And if real in?ation continues to fall short of projections, policymaking becomes increasingly di?cult. April 19, 2023 The RBI may have to wait until 2026 for an Updated CPI In?ation Series You can share this post! April 19, 2023 Elon Musk Announces the Development of the “TruthGPT” Chatbot Previous article Elon Musk Announces the Development of the “TruthGPT” Chatbot Next article Alia Bhatt’s Sawalia avatar to launch Halo Paints, assist Ayushman Khurrana in JSW’s new campaign MARKETING HOME CAMPAIGNS DIGITAL MEDIA STARTUPS ECONOMIC MARKETS Related Articles FUND RAISING ECONOMIC ECONOMIC ECONOMI
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