In continuation with my recent blog about WPI as incorrect measure of Inflation, it seems Indian government is moving in right direction. There are definite steps being taken to reconsider Inflation measure in India. As per Mr. Pronab Sen (Chief Statistician – Central Statistical Organisation), new measures will be introduced around Q3, 2010 timeframe. Not only that, there will be four sub-indices i.e. national, urban, rural, state to define Inflation measure at appropriate levels.
This will definitely bring sanity and purpose to Inflation as appropriate measure, which is currently grossly disconnected with WPI as measure. Good to know I know one topic in Economic well, at least thought process is aligned in right direction. Time to move forward and wait for Aug, 2010.
Source: Inflation news @ www.tradingIdeas.in