Government sets up a panel to devise new Producer Price Index to replace Wholesale Price Index The Economic Times

Grameen Foundation defines the PPI as “a simple and accurate tool that measures poverty levels of groups and individuals. Thus the organization has been able to assess the progress of its clients from the poverty level they were in when they became its members. The efforts of Grameen Koota in using the PPI have now been recognized.

WPI is also used for the purpose of escalation clauses in the supply of raw materials, machinery and construction work. Business firms in search of effective methods for coping with https://1investing.in/ changes in prices often employ price adjustment clauses in long-term sales and purchase contracts. The basket will also vary for economy wide, regional or sector specific series.

The week starting November 14 is lined up with some important national and global key macro-economic events, which could influence trading on Dalal Street. Among important macro data to be released next week in India are the CPI inflation and WPI inflation reading for the month of October. In addition to this, India’s trade exports and imports and trade deficit numbers will be out.

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G20 is the premier forum for international economic cooperation representing around 85 percent of the global GDP, over 75 percent of the global trade, and about two-thirds of the world population. The country’s services exports increased by 18.72 percent year-on-year to $25.65 billion during September 2022. During this month, services imports rose by 20 percent year-on-year to $15.10 billion. A Reuters poll predicted that CPI slowed in October to 6.73% on weaker food price rises and a strong base one year ago. Here are the key economic, leadership and other events in India and around the world to get you started for next week.

Analysts surveyed by FactSet had forecast that wholesale prices would come in 7.2% higher than last year, with a month-over-month gain of 0.2%. But the monthly figure also came in higher than expected at 0.3%. By Oliver Gray Investing.com – U.S. stock futures were trading lower during Sunday’s evening trade, after major benchmark averages fell to 3-week lows as growing recession fears tempered…

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Some of the important indices like Wholesale Price Index , Consumer Price Index , etc. give a fairly good idea as to what is happening in the economy. We aim to do the above by explaining various economic terms in a simple and a lucid manner. This will be especially beneficial for the students who are going to give their first attempt. So in this series of articles, we will be taking up the numerous economic jargon, one by one and try to simplify them for you.

The FPI investment witnessed trend reversal after a net withdrawal of ₹8 crore in October and ₹7,624 crore in September. Since January, the FPIs have flushed out ₹1.40 lakh crore from the Indian market. The trend in the global equities market will continue to affect the domestic share market.

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However, CPI is used for adjusting income and expenditure streams for changes in the cost of living. While the first two are compiled and released by the Labor Bureau in the Ministry of Labor and Employment, the third is by the Central Statistics Office in the Ministry of Statistics and Programme Implementation. RBI takes monetary measures while the Government takes fiscal measures to contain inflation. At any given point of time, inflation is attributed to both sets of factors. In any economy, generally two sets of factors result in inflation — Demand-pull factors and Cost-push factors. In India, the Ministry of Statistics and Programme Implementation measures inflation.

• The Consumer Price Index inflation and Wholesale Price Index inflation reading for the month of October are scheduled to be released this week, which could impact trading on Dalal Street.
• On the supply side, Guizhou’s electricity is in short supply, and local aluminium smelters may reduce their capacity by 20%.
• People holding cash may not like inflation, as it erodes the value of their cash holdings.
• The main goal of the Producer Price Index is to address price increases at the producer level before they are passed on to consumers, and it excludes indirect taxes, transportation, trade margins, and so on.
• The WPI based inflation estimates also serve as an important determinant, in formulation of trade, fiscal and other economic policies by the Government.

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Nonetheless, SHFE will be supported amid the low social inventory. Secondly, Weights of items in CPI are derived from Consumer Expenditure Surveys whereas for PPI it is calculated on the basis of Supply Use Table. The CPI is released by the National Statistical Office , Ministry of Statistics and Program Implementation.

Prime residential market in Dubai set for world’s strongest growth in 2023 Across Riyadh’s… Please note that the press release in English is brief compared to the Arabic version. Inflation is indicative of the decrease in the purchasing power of a unit of a country’s currency.This could ultimately lead to a deceleration in economic growth. In WPI, more weightage is given to manufactured goods, while in CPI, more weightage is given to food items. The United States government ramped up spending in response to COVID shutdowns, and the national debt held by the public has soared to $24 trillion, from $17 trillion in early 2020.

By Ambar Warrick Investing.com — Most Asian stock markets rose slightly on Tuesday tracking a strong overnight lead-in from Wall Street, although gains were limited as traders awaited key… Aggregate index based on goods and services may be compiled and released once the coverage of service sector indices is adequate and the sector-wise indices are robust and stable. The import window remained closed amid the higher futures prices in the overseas market.

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He attributed the expected moderation in inflation in October to measures taken by both the government and RBI in the last 6-7 months. In India, the Ministry of Statistics and Programme Implementation will release October’s headline retail inflation measured by the Consumer Price Index on November 14 at 5.30 pm. Also, inflation based on the Wholesale Price Index , and the month’s exports and imports data will also be out on this day. The proposed index will seek to bring India’s inflation gauge on a par with international standards, with PPI tracking changes at the producer level for both goods and services and CPI providing details of retail prices. Producer Price Index Wholesale Price Index The Producer Price Index or PPI is an index that measures the average price change received by the producer excluding the indirect taxes. Index of Industrial Production or IIP is used to measure the manufacturing activity in various sectors of an economy.

It is calculated for a fixed list of items including food, housing, apparel, transportation, electronics, medical care, education, etc. Friday’s producer price data captures inflation at an early stage of production and can often signal where consumer prices are headed. The government’s consumer price index comes out on Tuesday, just as the Federal Reserve convenes for its final schedule policy meeting of 2022. Stocks are slipping on Wall Street after a report showed inflation is still hotter than expected, even though it is slowing. The S&P 500 was 0.3% lower and on pace for its sixth loss in the last seven days. The trigger was data showing prices at the wholesale level were 7.4% higher in November than a year earlier.

Index of Industrial Production data or IIP as it is commonly called is an index that tracks manufacturing activity in different sectors of an economy. CPI covers only consumer goods and consumer services while WPI covers all goods including intermediate goods transacted in the economy. The Wholesale Price Index was the main index for measurement of inflation in India till gdp welfare limitations April 2014 when RBI adopted the new Consumer Price Index as the key measure of inflation. When these rates are altered, the movements are passed on other prevailing interest rates in the economy which ultimately influences the borrowing costs for firms and households. It is generally agreed that high rates of inflation is caused by an excessive growth of the money supply.

The IIP index data, once released, is also available on the PIB website. There is a lag of six weeks in the publication of the IIP index data after the reference month ends. Primary use of WPI is to have inflationary trend in the economy as a whole.

In terms of NPI, as downstream restocking is coming to an end, the NPI demand will decrease in the future, and the subsequent transactions are expected to be relatively small. So the CPI depicted the change in level of average retail price of goods and services consumed by Industrial workers. At present, separate series of index numbers are compiled to capture the price movements at retail and wholesale level in India.

Disinflation is a temporary slowing of the pace of price inflation. It is used to describe instances when the inflation rate has reduced marginally over the short term. Larsen & Toubro, Tata Steel, Wipro and Axis Bank also advanced by over 3 per cent.