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purchased by households. The CPI is a statistical estimate constructed using the prices of a sample of representative items whose prices are collected periodically. Sub-indexes and subsub-indexes are computed for different categories and sub-categories of goods and services, being combined to produce the overall index with weights reflecting their shares in the total of the consumer expenditures covered by the index. It is one of several price indices calculated by most national statistical agencies. The annual percentage change in a CPI is used as a measure of inflation. A CPI can be used to index (i.e., adjust for the effect of inflation) the real value of wages, salaries, pensions, for regulating prices and for deflating monetary magnitudes to show changes in real values. In most countries, the CPI is, along with the population census and the USA National Income and Product Accounts, one of the most closely watched national economic statistics.
Two basic types of data are needed to construct the CPI: price data and weighting data. The price data are collected for a sample of goods and services from a sample of sales outlets in a sample of locations for a sample of times. The weighting data are estimates of the shares of the different types of expenditure in the total expenditure covered by the index. These weights are usually based upon expenditure data obtained from expenditure surveys for a sample of households or upon estimates of the composition of consumption expenditure in the National Income and Product Accounts. Although some of the sampling of items for price collection is done using a sampling frame and probabilistic sampling methods, many items and outlets are chosen in a commonsense way (purposive sampling) that does not permit estimation of confidence intervals. Therefore, the sampling variance cannot be calculated. In any case, a single estimate is required in most of the purposes for which the index is used. The index is usually computed monthly, or quarterly in some countries, as a weighted average of sub-indices for different components of consumer expenditure, such as food, housing, clothing, each of which is in turn a weighted average of sub-sub-indices. At the most detailed level, the elementary aggregate level, (for example, men's shirts sold in department stores in San Francisco), detailed weighting information is unavailable, so indices are computed using an unweighted arithmetic or geometric mean of the prices of the sampled product offers. (However, the growing use of scanner data is gradually making weighting information available even at the most detailed level.) These indices compare prices each month with prices in the price-reference month. The weights used to combine them into the higher-level aggregates, and then into the overall index, relate to the estimated expenditures during a preceding whole year of the consumers covered by the index on the products within its scope in the area covered. Thus the index is a fixed-weight index, but rarely a true Laspeyres index, since the weight-reference period of a year and the price-reference period, usually a more recent single month, do not coincide. It takes time to assemble and process the information used for weighting which, in addition to household expenditure surveys, may include trade and tax data. Ideally, the weights would relate to the composition of expenditure during the time between the price-reference month and the current month. There is a large technical economics literature on
4%. usually called the base year.index formulae which would approximate this and which can be shown to approximate what economic theorists call a true cost of living index. Food and Beverage: 17. often differs both from the weightreference period and the price reference period. whereas in most of Europe it is regarded more pragmatically.4%. in some countries.000 items from 22. Alternately. Calculating the CPI for a single item Where 1 is usually the comparison year and CPI1 is usually an index of 100. Entertainment: 4. notably in the United States and Sweden.0%. Such an index would show how consumer expenditure would have to move to compensate for price changes so as to allow consumers to maintain a constant standard of living. Nevertheless.4%.000 stores. the price of bread in 1982). the philosophy of the index is that it is inspired by and approximates the notion of a true cost of living (constant utility) index. Other: 6. Approximations can only be computed retrospectively. Consumers' expenditure abroad is usually excluded. This is just a matter of rescaling the whole timeseries to make the value for the index reference-period equal to 100. Transport: 17.9%. Saving and investment are always excluded. The index reference period. The "updated cost" is the price of an item at a given year (say. certain groups such as the very rich or the very poor may be excluded. divided by the initial year (the price of bread in 1970). Annually revised weights are a desirable but expensive feature of an index. They are weighted this way: Housing: 41.000 rental units are added together and averaged. Taxes (43%) are not included in CPI computation. multiplied by one hundred. Calculating the CPI for multiple items Example: The prices of 95. Medical Care: 6. whereas the index has to appear monthly and. The coverage of the index may be limited.9%.0%. visitors' expenditure within the country may be excluded in principle if not in practice. for the older the weights the greater is the divergence between the current expenditure pattern and that of the weight reference-period. though the prices paid for financial services provided by financial intermediaries may be included along with insurance. the CPI can be performed as . Apparel: 6. . the rural population may or may not be included. and 35. preferably. quite soon.
traders said." NCCF Managing Director M K Khan said.000 tonnes of onions from Pakistan to mitigate the crisis triggered by short supply resulting in prices soaring to Rs 70-85 per kg in major cities in December last. NEW DELHI: The sliding wholesale prices of onion pushed down its retail rate by Rs 10 a kg in Delhi and Mumbai today.we may further dip the rate after assessing market trend this evening. Onion prices dropped to Rs 30-50 a kg in retail in the national capital and Mumbai from Rs 40-60 a kg yesterday. NCCF (National Cooperative Consumers' Federation of India) has also dropped the price to Rs 32/kg. which had risen to the level of onions early this week. onions were sold at Rs 30-50 per kg in retail in the metros except Chennai where the rate ruled at Rs 60/kg today.NEW DELHI: Cooperative majors Nafed and NCCF today lowered onion prices vendored to consumers in Delhi by upto Rs 5 at Rs 30-32/kg but open market prices continued to rule high across the country. Wholesale price of onions maintained yesterday's level of Rs 12-32 per kg in Azadpur market (Asia's biggest wholesale fruits & vegetables market). With this arrival. Sources in Nafed office at Azadpur (where onions coming from Pakistan are stored and made available to the cooperatives and surplus stocks sold in the open market) said a total of 240 tonnes of onions from the neighbouring country have reached so far. State-agencies PEC and STC had contracted 1. a total of 814 tonnes of onions from Pakistan have reached India so far to reinforce the domestic supply. But. "Our five outlets and 20 mobile vans are selling onion at the rate of Rs 30 per kg in Delhi from today. which had intervened to provide relief to consumers by selling onions at subsidised rate of Rs 35 per kg. "The rest 186 tonnes of onions from Pakistan will also arrive in the country soon. Maintaining yesterday's level. Official sources said that the third consignment of 188 tonnes of onions ordered by the government from the neighbouring country landed at Mundra port in Gujarat yesterday. General Secretary Onion Merchants Association Rajendra Sharma said. Pak onions are coming to Delhi by road from Mundra port in Kutch district of Gujarat. providing some relief to the consumers who had been moved to tears due to its skyrocketing cost. NCCF have been selling onions through 10 outlets in the national capital and also started mobile vans. "NCCF have been selling onion at the rate of Rs 32/kg for the past three days. lowered the price from today to Rs 30/kg. The Nafed MD attributed drop in prices to boost in the supply particularly due to arrival of the bulb from Pakistan. also stayed steady in the metros today at Rs 30-60/kg in retail." the sources said. Kolkata and Chennai were not so . Cost of another vital produce tomato.." Nafed Managing Director Sanjeev Chopra told PTI. traders said Agri-cooperative Nafed..
Onion was being sold at Rs 12-32 a kg in Azadpur market today. out of the 200 tonnes of onion to be imported from Pakistan. The cost of onions also relented in other major cities. they said. in Chennai. Onion. the remaining were auctioned in the Azadpur market at a rate of 26. as the vegetable fetched good price at home itself. Cost of bulk purchase of onions has come down by about Rs 18 a kg in Delhi's Azadpur market (Asia's biggest fruits & vegetables wholesale market) since January 13. The Consumer Affairs Ministry data on retail prices of some essential commodities revealed that onion sold at Rs 34 a kg in Patna. which has entered into a contest offlate with onion. BJP national secretary Kirit Somaiya today demanded that the Centre order a CBI probe into the "onion price rigging scam". remained expensive in Shimla and Itanagar at Rs 60 a kg respectively. . he alleged that the price rigging pushed the retail prices in the country to Rs 80. 180 tonnes had reached Mundra port in Gujarat on last Friday. General secretary of Azadpur based Tomato Merchants Association.90 per kg.lucky where the vegetable maintained yesterday's level of Rs 45-60 per kg in retail. Subhash Chugh said supply of the crop picked up today. "The major crop of onion in Nasik arrives in April and stored by big traders and cartel members. The stock is supplied for the next 9-10 months. More than 20 trucks (each carrying 8-9 tonnes) loaded with tomato reached Azadpur today. the biggest onion market of Asia. Drop in onion prices in Delhi and Mumbai is attributed to sliding rates in wholesale markets in the past one week. Alleging that a cartel was behind the sky-rocketing prices of onions in the country. Retail price of tomato. shows the working of the cartel. however. General Secretary Onion Merchants Association Rajendra Sharma said. while it was available at Rs 45 a kg in Lucknow. Meanwhile. The onions sold at Rs 80 were from the old stock. the sources added. the retail price of the vegetable increased by Rs 5 a kg at Rs 45 a kg since yesterday. It was available at Rs 40-50 a kg in Delhi and at Rs 20-30 a kg in the Eastern metropol today. While. it said. However. a report said. The stock has now reached Delhi. 2010 at Lasalgaon. It. The big people jacked up prices by creating the scare of shortage and minted Rs 1100 crore. Maintaining that the farmers and onion producers were paid only Rs 12-18 per kg. also lowered by Rs 10 a kg in Delhi and Kolkata. official sources said. which was sold at Rs 12 per kg in the wholesale market on that day went up to Rs 63 per kg later on the same day. "The manipulation and rigging of prices of onions on December 20. a portion of the imported onion from the neighbouring country was made available to agri-cooperative Nafed. addressing a meeting of BJP leaders and workers here. he said adding no truck headed for export to Pakistan. Nasik. when it had zoomed to Rs 50 a kg. Rs 33 a kg in Hyderabad and Rs 44 a kg in Bangalore today." he said." he claimed.
He also said that the BJP would let the Union Budget be presented but would stall the house until a JPC is appointed on the 2G issue. . who benefited from the price rise among other issues.The BJP leader demanded that the Centre order a CBI probe to bring out the truth about who are the members of the cartel. he said.
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