In order to resolve the deadlock on the reporting frequency of the new series of wholesale price index - used to measure headline inflation - the National Statistical Commission may discuss a proposal for a weekly index comprising only primary articles and fuel items. The comprehensive WPI will be published once in a month, according to the proposal.
The NSC, the country's apex statistical body, has convened a meeting with the Reserve Bank of India and the finance ministry to discuss the matter early next month.
Officials involved in the process say this is aimed at pacifying the RBI and the finance ministry as both are opposed to monthly reporting.
According to the proposal, a wholesale price index comprising primary and fuel items will be published every week, while the comprehensive index, including the manufactured items, will be released monthly.
The Department of Industrial Policy and Promotion, which compiles the headline-inflation data, has agreed to the proposal. "Prices of primary and fuel articles are easy to collect, unlike that of the manufactured items. As prices of such items are more volatile, the index could give inputs to policy-makers about price changes affecting a large section of the society," the official said.
A working group under Planning Commission member Abhijit Sen which was asked to come out with a new WPI series has recommended shifting to monthly reporting as against the current system of weekly releases. This is meant to make the data more accurate and reliable. However, the finance ministry feels the switchover will delay policy responses to inflation. The RBI, which is also a key user of the data, has expressed its objections saying any change will destabilise its present system of publishing weekly statistical supplements, which include weekly WPI data.
The new WPI series, with a base year 2004-05, is expected to include 1,100 manufactured items, 105 primary articles and 19 items in the fuel group. Price quotations for all commodities are proposed to be increased to around 6,000 from 1,918 at present.