New Measure of Inflation: Now your online shopping will also tell how much inflation – new CPI series will be launched in 12 cities

News India Live, Digital Desk: New measure of inflation: Have you ever wondered how the government calculates inflation? Till now it was mainly based on the data collected from shops and markets, but nowadays when most of us are shopping online, are our digital purchases also included? The good news is that this is going to happen now!

Government of India is an absolutely new consumer price index (Consumer price index – cpi) The series is preparing to bring the way to measure inflation completely. Your new series shopping online The data of will also be included, which will reveal a more accurate picture of inflation. This is a big step that recognizes our changing shopping habits. Let’s know what is this new plan, how will it work and which 12 cities will join it:

New way to measure inflation: Online shopping will also be included!

The Union Statistics and Program Implementation (Ministry of Statistics and Program Implementation – MOSPI) is working on a new CPI base year and a new series. Its biggest change is that it will now also include data related to e-commerce (online shopping).

1. Why is this change important?

• Changing habits: In the last few years, especially after epidemic, the trend of online shopping has increased rapidly. Now people are buying everything online from grocery to electronics.

• Accurate measurement: The current CPI series does not fully capture this online expenses. The inclusion of online expenses will reveal a more accurate and real picture of inflation.

• policy formulation: When the assessment of inflation is more accurate, the government and the Reserve Bank of India (RBI) will get more help in making monetary and financial policies.

2. How will the new system work?

• data repository: MOSPI is now working on ways to collect data from e-commerce platforms. This will include prices of goods and services sold online and their quantity.

• 12 City Pilot Project: Initially, this new series of the country 12 major cities Will be launched as a pilot project. These cities will probably be those where online shopping is the highest.

  
  

• Determination of weight: The ministry will decide within the next two months how much ‘weight’ is to be given to various goods and services (such as food, clothes, transport, education, and now online purchases). This ‘weight’ suggests which things are a large part of the consumer’s expenses.

This work will be done under which ministry? New measure of inflation

The work will be done under the Union Ministry of Statistics and Program Implementation (MOSPI), which is responsible for collecting and releasing the country’s economic data.

What is CPI and why is it so important?

• What is CPI?: Consumer Price Index (CPI) is an index that measures the average price change of goods and services purchased by retail customers. This is the most important measure of inflation for common people.

• Importance:

  • For RBI: The Reserve Bank of India (RBI) uses CPI to make monetary policy (such as fixed interest rates).

  • For the government: Helps the government to make its economic policies and budgets.

  • For common man: This helps to know how their purchase ability is changing.

This new CPI series will bring a major change in the Indian economy and ensure that the measurement of inflation is in line with modern consumer behavior. This is another important step towards Digital India, where our online activities will also be a part of national economic data.

UP RAIL TRACK: Now the train of progress will run, land acquisition for 130 km new track