2004-05 is new base year for inflation calculation

New Delhi, July 31 (ANI): Union Finance Minister Pranab Mukherjee on Friday announced that 2004-05 as the base year for the calculation of inflation of wholesale price index (WPI) series in the country.

Replying to a question on price indices in the Lok Sabha, Mukherjee said the WPI series is being upgraded with base year 2004-05 in lieu of the existing one with base year 1993-94.

With the advancement of the base year and probably a revision of commodities in the index and their weights, it is expected that the index would provide a better picture of the current scenario of prices.

Principal economist of the rating agency Crisil D.K. Joshi felt that the WPI will now become more representative of today's reality and it would come along with the revision in commodities and weights

Joshi also expressed doubts about the inclusion of the services in the index by the government; in that case people would have to continue depending on other indices like the consumer price index.

But Mukherjee cleared the air by stating the WPI price data collection completely excludes the services sector. (ANI)