The Ministry of Statistics and Programme Implementation has recently changed the time for release of Consumer Price Index and Index of Industrial Production data from 5:30 pm to 4 pm. The change is aimed at giving more time to analyse these data and to align it with the closing time of major financial markets in India.
Consumer Price Index
- Definition: CPI is a measure of retail inflation based on the prices of goods and services consumed by the country’s population.
- Publication: It is released by the National Statistical Office (NSO) and includes rural, urban, and combined (national) data at the all-India level.
- Base year: Currently, CPI is calculated taking 2012 as the base year.
- Categories: CPI includes various categories such as food and beverages, clothing, housing, fuel and light, and recreation. Currently, CPI is calculated taking into account 299 items.
Index of Industrial Production
- Definition: IIP is an economic indicator that measures the level of industrial production in an economy, reflecting short-term changes in the production volume of selected industrial products.
- Publication: It is published by NSO under MoSPI.
- Base Year: IIP is calculated taking 2011-12 as the base year.
- Components: There are three main sectors under IIP – mining, manufacturing, and electricity. Apart from this, it is also classified into use-based categories such as basic goods, capital goods, and consumer durables.
Importance of CPI And IIP Data
- CPI: It is the key inflation indicator that tracks changes in the prices of goods and services purchased by households. It is used for inflation targeting and monitoring price stability.
- IIP: It is a measure of industrial activity and serves as an indicator of short-term industrial growth. It is used in policy making and assessment of the performance of the economy.
Purpose and concerns of change in timing
- Due to incidents of data leak in 2013, the data release time was fixed at 5:30 pm to avoid affecting the day’s trading. However, it has now been changed to 4 pm to allow more time for data analysis. However, there are concerns about the potential impact on government bond and forex markets due to this new timing.
- The ministry says that this change is in line with their commitment to transparency and accessibility and ensures better alignment on the data release day.
Ministry of Statistics and Programme Implementation
- The Ministry of Statistics and Programme Implementation (MoSPI) is an independent ministry of the Government of India, dedicated to work related to statistics and programme implementation. It was established on 15 October 1999 after the merger of the Department of Statistics and Department of Programme Implementation.
The Ministry has two main wings
- Statistics Wing: It is also known as National Statistical Office (NSO).
- Central Statistical Office (CSO): It is engaged in major statistical activities of the country and compilation of national accounts.
- Computer Centre: Processes and analyses statistical data.
- National Sample Survey Office (NSSO): It collects sample data through surveys and submits it for analysis.
2. Programme Implementation Wing: It has three main divisions:
- Twenty Point Programme: Works to achieve the goals of national development and social welfare.
- Infrastructure Monitoring and Project Monitoring: Monitors the implementation and progress of various projects.
- Member of Parliament Local Area Development Scheme (MPLADS): Provides funds to MPs for development works in their constituencies.
Apart from these, the Ministry also has two other major institutions
- National Statistical Commission: It ensures the quality and stability of the statistical system in the country.
- Indian Statistical Institute: It is an autonomous institution, which has been given the status of an institution of national importance by the Parliament.
Role and Functions of the Ministry
- The Ministry focuses on the quality and coverage of statistics released in the country. Its data is based on administrative sources, surveys, and censuses collected by the Central and State Governments. Data is collected using scientific sampling methods and information is collected at the regional level through field staff.
Quality and Standardization
- The Ministry takes the help of various technical and advisory committees such as the Advisory Committee on National Accounts and the Technical Advisory Committee on Industrial Statistics and Price Index to ensure the quality of data. It prepares data after detailed scrutiny following standard statistical techniques, so that the country’s economy and development can be assessed accurately.