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Wanted: The Right Worm

The present indices are far from foolproof. India looks for new ways to track inflation.

WPI And A Whole Lot Of Issues
  • Incorrect or incomplete data limits ability to control inflation
  • No clarity on 'actual' rate of inflation, most experts say it's on the higher side
  • Frequent revisions in inflation data increase public outcry over price rise
  • Calculation of inflation on the basis of wholesale prices under question
  • New, improved urban consumer index to kick in soon, will replace WPI in 2 years
  • A producer price index also in the works, to track reason behind price rises

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