Index Numbers: Consumer Price Indices- I

In India, a number of consumer price indices are compiled at national and regional levels, and disseminated for general use. The important consumer price indices, compiled at national level in India are:

1. Consumer Price Index for Urban Non-Manual Employees [CPI(UNME)]
2. CPI for Industrial Workers [CPI(W)]
3. CPI for Agricultural Labourers [CPI(AL)]
4. CPI for Rural Labourers [CPI(RL)]

Among these indices, the first index [CPI (UNME)] is compiled by CSO and the last three are compiled by the Labour Bureau.

1. Consumer Price Index for Urban Non-Manual Employees [CPI (UNME)]
   1. The reference population of CPI (UNME) is restricted to households obtaining predominantly their income from gainful employment in non-manual work in non-agriculture sector in urban areas.
   2. The CSO has been compiling CPI (UNME) since 1960. The base year of the earlier series was 1960. The CPI (UNME) series, with 1960 as the base year, was based on a Middle Class Family Living Survey (MCFLS) conducted by the CSO in 1958-59. The survey covered about 36,000 families of non-manual employees, residing in 45 cities and towns spread throughout the country. This survey provided the base-data for deriving the weights required for construction of the index. The centres were selected by taking into account their administrative importance, middle class concentration and regional representation. The number of centres allotted to various states were broadly in proportion to the urban population of the respective state. The index for each centre involved approximately 180 items of goods and services.
   3. The current CPI (UNME) series is having the base year 1984-85. These indices are separately compiled on monthly basis for 59 urban centres, together with the corresponding All-India general index. The weights for the current CPI (UNME) series are based on a Family Living Survey (FLS), conducted during 1982-83 in 59 selected urban centres spread all over the country. The survey covered 45,000 families of urban non-manual employees, who, by definition, derived 50 per cent or more of their income from gainful employment on occupations of one or more of its members doing non-manual work in the non-agricultural sector. Prior to the regular price-data collection, market surveys were carried out during the year 1983 in each if the centres. Using the amended weights, and results of the market survey, the revised CPI (UNME) series, with 1984-85 base, is being compiled and released every month for use by general public since November 1987.
   4. CPI (UNME) series are regularly compiled and published in the Monthly Abstract of Statistics, brought out by CSO. Department of Statistics, Ministry of Planning and Programme Implementation, Government of India. Summary-values of the CPI (UNME) series are also published in some other publications such as monthly RBI Bulletin and the Indian Labour Journal.

    

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