In order to ensure better reflection of retail price movement and to help the R.B.I. for taking effective monetary policy steps dealing with inflation, the CSO, Govt. of India has developed its methodology to compile C.P.I. at micro level (grass root level) on monthly basis. In this context, the following steps have been taken by DE&S, Govt. Odisha to compile new series of C.P.I. at district level.
A) Item Basket & Development of Weighting Diagram
B) Sampling Design
C) Conducting Market Survey
D) Selection of Base year
E) Collection of Base Year Prices
F) Collection of Current Year Prices
A. Item Basket & Development of Weighting Diagram
The item basket has been prepared provisionally taking the items used in the 68th Round NSS data on Consumer Expenditure Survey and it is finalized after preparation of weighting diagram. In total 300 no. of items have been selected to be included in the item basket for compilation of sub-state CPI. The items have been classified into 6 broad groups namely 1) Food and Beverages, 2) Pan, Tobacco and Intoxicants, 3) Clothing and footwear, 4)Housing, 5) Fuel and light 6) Miscellaneous.
The development of weighting diagram has been made as per the procedures laid down in TAC Report – 2014. Accordingly 22 nos. of weighting diagrams for 22 regions (covering all 30 districts) of the State have been prepared which includes 15 no. of independent regions for 15 districts and 7 regions by clubbing 2 or 3 nearby remaining districts. The Weighing Diagram was approved by the 56th TAC meeting of TAC on SPCL held on 8th July, 2016.
B. Sampling Design (Rural & Urban):
Selection of samples have been done as per the instructions laid down in the TAC Report—2014. From the above 22 regions, a total of 129 no. of sample villages with 129 no. of rural markets and 74 no. of sample Towns with 84 no. of urban markets have been selected. The rural samples were approved by 56th meeting of TAC on SPCL held on 8th July, 2016 and the urban samples were approved by 57th TAC meeting of TAC on SPCL held on 21st July, 2016.
C. Conducting of Market Survey
Market Survey has been conducted comprising of the selection of markets, identification of shops, fixing specifications of items with unit & quantity included in the item basket for each market separately.
D. Selection of Base Year and Collection of Base Year Prices
The year 2017 has been taken as Base Year for compilation of Sub-state CPI. Base year prices against all the priced items (included in the Item Basket) have been collected from all the 213 markets of the state from January 2017 to December 2017 as per the instructions issued by Director (SPCL), CSO, Govt. of India.
F. Collection of Current Year Prices:
Current year retail prices against all the selected priced items have been collected from all the 213 markets of the state on monthly basis from January 2018 onwards as per the instructions issued by Director (SPCL), CSO, Govt. of India.
G. Compilation of Consumer Price Index (CPI):
The district / region wise compilation of consumer price index is under progress.