Calculation of CPI

Calculation of CPI

                The Labour Bureau has been compiling and maintaining three different series of Consumer Price Index numbers viz. (i) Consumer Price Index Numbers for Industrial Workers (CPI-IW) on base 2001=100, (ii) Consumer Price Index Numbers for Agricultural Labourer on base 1986-87=100, (iii) Consumer Price Index Numbers for Rural Labourer on base 1986-87=100.

These index numbers measure a temporal change in prices of fixed basket of goods and services consumed by the target groups and are compiled on the basis of the prices of selected goods and services which are collected every week/month and the weights assigned to them. Weights to the selected items are assigned on the basis of the expenditure incurred on them as revealed by the surveys conducted for the purposes.

The index numbers for centre/state are compiled in several stages i.e. Sub-group, Group and General level. These centre/state level indices are then weighed to work out all-India indices.

The weights (Group / Sub-group wise) under  Consumer Price Index for Industrial Workers on base 2001=100 and Consumer Price Index Numbers for Agricultural Labourer / Rural Labourer on base 1986-87=100 are given at Annexure.

The services like education, health/medicine, transportation are included in the compilation of all three Consumer Price Index Numbers. The details of the weights assigned to services like education, health/medicine, transportation, etc. are given in Annexure.

There is substantial increase in the weights attached to services like education, health/medicine,transportation in successive series of Consumer Price Index number for Industrial Workers which is revealed from the statement given below:

1.       Consumer Price Index numbers for Industrial Workers on base 2001=100

Group/Sub-group	Weights		Percentage increase / decrease
	Base 1982=100	Base 2001=100
Medical Care	2.59	4.56	76.06
Education, Recreation & Amusement	3.14	6.18	96.82
Transport & Communication	2.65	4.87	83.77
Personal Care & Effects	3.31	4.22	27.49

2.  For Consumer Price Index Numbers for Agricultural Labourer / Rural Labourer on base 1986-87=100, there was no separate sub-groups in respect of Education, Health / Medicine and Transportation in the previous series i.e. 1960-61=100. However, the weights assigned to them during the current series i.e. 1986-87=100 are as under:

Group / Sub-groups	Weights
	AL	RL
Medical Care	4.38	4.23
Education, Recreation & Amusement	0.94	0.99
Transport & Communication	1.67	1.80
Personal Care & Effects	2.04	2.28

                The Union Labour & Employment Minister Shri Mallikarjun Kharge gave this information in a writtenreply  in  Lok  Sabha today.

ST/bs

Annexure

All India weights Group / Sub group wise for Consumer Price Index Number  for Industrial Worker on base 2001=100 and Consumer Price Index Number for Agricultural & Rural Labourers on base 1986-87=100.

Sr. No.	Group / Sub group	Weight for
		CPI-IW 2001=100	CPI-AL 1986-87=100	CPI-RL 1986-87=100
I	Food Group
	Cereals and Products	13.48	40.94	38.15
	Pulse and Products	2.91	3.39	3.40
	Oil and Fats	3.23	3.83	3.79
	Meat, Fish and Eggs	3.97	3.10	3.31
	Milk and Product	7.31	3.74	3.94
	Condiments and Spices	2.57	4.12	3.92
	Vegetable and Fruits	6.05	5.06	5.05
	Other food	6.68	4.97	5.21
	Total Food Group	46.20	69.15	66.77
	Pan, Supari, tobacco and intoxicants	2.27	3.79	3.70
II	Fuel and Light	6.43	8.35	7.90
III	Housing Group	15.27	-	-
IV	Clothing, Bedding and Footwear	6.57	6.98	9.76
V	Miscellaneous
	Medical Care	4.56	4.38	4.23
	Education, Recreation and Amusement	6.18	0.94	0.99
	Transport and Communication	4.87	1.67	1.80
	Personal Care and Effects	4.22	2.04	2.28
	Others	3.43	2.70	2.57
	Total Miscellaneous Group	23.26	11.73	11.87
	Total	100	100	100

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(Release ID :86838)