The price indices in the system of economic statistics are closely watched indicators of macro-economic performances. They are direct indicators of the purchasing power of money in various types of transactions involving goods and services. As such, they are also used as deflators in providing summary measures of the volume of goods and services produced and consumed. Consequently, these indices are important tools in the design and conduct of the monetary and fiscal policy of the Government, and also of great utility in taking economic decisions throughout the private sector. In India, for these varied purposes Central and State Government agencies collect the primary data on prices. There are mainly three agencies namely, Labour Bureau in the Ministry of Labour, Office of Economic Adviser in Ministry of Industry and Central Statistical Organisation in the Ministry of Statistics and Programme Implementation responsible for the compilation and release of various indices.
Consumer Price Index (CPI)
The Consumer Price Index is intended to measure the changes in the level of the retail price over a period of time paid by a set of population called target group for a fixed basket of goods and services consumed in a particular month as compared to the base period. For computation of CPI the consumable items, comprising of goods and services, which are generally used by the workers of factories, mining, plantations, motor transport, ports, docks, railways & electricity are taken into account. At the all India level the Labour Bureau, Shimla, computes the Consumer Price Index for Industrial workers for 78 centers across the country. In Sikkim, DESM&E is responsible for compiling consumer price index for industrial workers of the state.
CPI is under construction and the base year is being changed to 2015-16