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6:18 AM
Reserve Bank Governor D Subbarao today proposed a producers price index saying that the present structure of measuring inflation does not capture the price
movement of services and is a hybrid of rate quotes. He said, the Producer Price Index (PPI) will be better able to measure the average change over time in the sale prices of domestic goods and services.
Addressing a function in Mumbai, Mr.Subbarao said, sellers' and purchasers' prices differ due to government subsidies, sales and excise taxes, and distribution costs.
The RBI Governor further said that core inflation gives a better picture of price trend as it is less volatile WPI-based inflation.
Core inflation is usually estimated by excluding food and energy prices from the basket of goods and services that represents a household's spending.
movement of services and is a hybrid of rate quotes. He said, the Producer Price Index (PPI) will be better able to measure the average change over time in the sale prices of domestic goods and services.
Addressing a function in Mumbai, Mr.Subbarao said, sellers' and purchasers' prices differ due to government subsidies, sales and excise taxes, and distribution costs.
The RBI Governor further said that core inflation gives a better picture of price trend as it is less volatile WPI-based inflation.
Core inflation is usually estimated by excluding food and energy prices from the basket of goods and services that represents a household's spending.
Labels: Producer Price Index (PPI), RBI
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