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(Sub-State) Level Consumer Price Index (CPI) in Odisha, 2020

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(Sub-State) Level Consumer Price Index (CPI) in Odisha, 2020 A Report on Compilation of District (Sub-State) Level Consumer Price Index (CPI) in Odisha, 2020 This report has been prepared on the steps taken by DE&S, Govt. of Odisha for compilation of District (Sub-State) level Consumer Price Index (CPI) in Odisha. Attempts have been made to highlight on the following points. a) Development of Weighting Diagram b) Sample Design c) Market Survey d) Collection of Base Year Price Data e) Collection of Current Year Price Data Weight Reference Year : 2011-12 Base Year : 2017 (Price Reference Year) Directorate of Economics and Statistics, Odisha Bhubaneswar Sri Padmanabha Behera, Hon’ble Minister, Planning & Convergence, Commerce & Transport, Government of Odisha Message I am glad to know that, the Directorate of Economics and Statistics is going to publish a report on “Compilation of District (Sub-State) level Consumer Price Index in Odisha, 2020”. This initiative provides a framework for compilation of Consumer Price Index in Odisha. I, appreciate the efforts made by the Sri S. Sahoo, ISS, Director, Economics and Statistics, Odisha and his team for their sincere effort to bring out this publication. (Padmanabha Behera) SURESH CHANDRA MAHAPATRA,IAS Tel : 0674-2536882 (O) Development Commissioner-Cum- : 0674-2322617 Additional Chief Secretary & Secy. to Govt. Fax : 0674-2536792 P & C Department Email : [email protected] MESSAGE Directorate of economics and Statistics, Department of Planning and Convergence, Government of Odisha, is bring out the publication on “Compilation of District (Sub-State) level Consumer Price Index (CPI) in Odisha, 2020 ”. CPI numbers are widely used as macro-economic indicators to study the changes in the real price level of consumers. It is hoped that this report will help the Government as well as other stake holders for study of inflation and monitoring price stability in the State. I gladly appreciate the efforts made by the State DES under the active guidance of CSO, MoS &PI, Govt. of India. and hope the report will serve as a ready reckoner to all the Users, Researchers as well as to Planners and Policy makers who are involved in study of price statistics and inflation for the household sector as a whole. (Suresh Chandra Mahapatra) ସଙ୍କର୍ଷଣ ସାହୁ, ଭା.ପ.ସେ ଅର୍ଥନୀତି ଓ ପରିସଂ孍ୟାନ ଭବନ ନିସଦେଶକ Arthaniti ‘O’ Parisankhyan Bhawan ଅର୍େନୀତି ଓ ପରିେଂଖ୍ୟାନ HOD Campus, Unit-V Sankarsana Sahoo, ISS Bhubaneswar -751001, Odisha Director Phone : 0674 -2391295 Economics & Statistics e-mail : [email protected] Foreword Over the years, Consumer Price Index numbers are being used as a macro-economic indicator of inflation and also as a tool by Govt. for monitoring price stability. It is considered as one of the most important economic indicators recommended under Central Plan Scheme namely ISSP (Indian Strengthening of Statistical System Project) implemented in the state from 2012-13 to 2016-17 and later on as a state scheme i.e.,SSS (Strengthening of Statistical System ). The present Report on “Compilation of District (Sub-State) level Consumer Price Index (CPI) in Odisha,2020” throws light on different steps to be taken for compilation of Consumer Price Index in Odisha. It highlights on preparation of Item Basket for development of Weighting Diagram, Sampling Design and conduct of Market Survey for compilation of District Level CPI. My sincere gratitude to Sri Suresh Chandra Mahapatra, IAS, DC-cum-ACS for his guidance and valuable suggestion for bringing out this report. I hope, the present report will serve as a guide for Users, Researchers, Planners & Policy makers who are involved in the study of Price Inflation/Price Stability. Any suggestion from any quarter for improving the future publication is most welcome. Bhubaneswar (S. Sahoo) July 2020 Miss Prabhatirani Pradhan, Joint Director Directorate of Economics & Statistics Odisha, Bhubaneswar Preface The report “Compilation of District (Sub-state) level Consumer Price Index(CPI) in Odisha-2020” is a move towards study of true picture on the price behavior and effect of price fluctuations of various goods and services consumed by the general population in the state over a period of time. The Directorate of Economics & Statistics under the technical guidance of Price Division, CSO(NAD), MoS&PI, Government of India has prepared this report which will serve as a step by step guide for compilation of CPI at the district level on monthly basis. On behalf of Price Division, DE&S, I express my deep gratitude to Sri S. Sahoo, ISS, Director, Economics & Statistics for his constructive guidance and suggestion in bringing out this report. I extend my sincere thanks to the team of officers and staff of Price Division & Computer Division of DE&S for their tireless efforts in preparing this report. I hope, that this publication will serve the purpose of Government, Policy makers and users to a great extent. I gladly look forward for any suggestion towards improvement of this report. Bhubaneswar July, 2020 (Prabhatirani Pradhan) Officers and Staff Associated 1. Sri S. Sahoo, ISS Director 2. Miss Prabhati Rani Pradhan Joint Director 3. Sri Dillip Ku. Bariha Deputy Director 4. Sri Byomakesh Patra Assistant Director 5. Smt. Anita Dash Assistant Statistical Officer 6. Sri Sarat Chandra Sahoo Statistical Officer Contents Sl. No Subject Page Chapter- I Introduction 1 Chapter -II Item Basket and Development of Weighting Diagram 4 Chapter- III Sampling Design 21 Chapter- IV Conduct of Market Survey and Selection of Shops 27 Chapter- V Selection of Base year and Collection of Price Data 35 Chapter- VI Compilation of CPI 47 Annexures Annexure- I Illustrative Example for Compilation of Final Weights 48 Annexure- II Group/ Sub-Group wise percentage share of items in the Final 50 Item Basket after derivation of the Weighting Diagram Annexure- III List of Villages and markets selected (District-wise/Block- 51 wise) Annexure- IV District wise list of Towns and Selection Procedure for Urban 54 Sample Annexure- V District wise/ Town wise list of Markets Selected for Urban 62 Samples. Annexure- VI State Level Final Item Basket (Priced Items) 64 Annexure- VII District/Region wise Number of Priced Items 79 Annexure- VIII NSS 68th Round (2011-12) CES Schedule 80 Chapter I Introduction Introduction: 1.1 Price is an important economic variable in the market economy. It is the amount of money paid in exchange for a certain amount of a commodity, good or services, e.g. Rs. Per kilogram. In market economy the prices of goods play some crucial roles in determining the optimal and efficient distribution of resources. Index numbers are the indicators which reflect changes over a specified period of time in respect of prices of different commodities, industrial production, sales, imports and exports, cost of living, etc. These indicators are important tools for review and management of present economic position and plan formulation. Some of the important indices like wholesale price index, industrial production index, agricultural production index, consumer price index, etc. give a fairly good idea as to what is happening to the economy of a country. Consumer price index (CPI) 1.2 A Consumer Price Index (CPI) is designed to measure the changes over time in general level of retail prices of selected goods and services that households purchase for the purpose of consumption. Such changes affect the real purchasing power of consumers’ income and their welfare. The CPI measures price changes by comparing, through time, the cost of a fixed basket of commodities. The basket is based on the expenditures of a target population in a certain reference period. Since the basket contains commodities of unchanging or equivalent quantity and quality, the index reflects only pure price. Objective 1.3 Traditionally, CPI numbers were originally introduced to provide a measure of changes in the living costs of workers, so that their wages could be compensated to the changing level of prices. With the passage of time, the CPI has acquired lot of importance in most countries, including India due to various reasons: it is one of the 1 key indicators to measure health of the economy. It is widely used as statistical tools and put to numerous uses such as (i) To provide an average measure of price inflation for the household sector as a whole. (ii) To adjust wages/ Dearness Allowance as well as social security & other benefits to compensate partly or completely for changes in the cost of living. (iii) For policy formulation by the Government. (iv) For situation analysis by the researchers etc. Price stability exists when average prices are constant over time or when they are rising at a very low and predictable rate and price deflation occurs when prices are falling. In both the cases, the effects are potentially extreme harmful to a country’s economic performance and to the welfare of its citizens. It is used as an adjustment factor for indexation of wages, social security benefits and other payments; basis for estimation of changes to cost of living; people have become conscious of changes in the prices of goods and services they consume and their impact on cost of living. CPI at All India Level 1.4 The National Statistical Commission (NSC), under Dr.C.Rangaranjan, in its Report (2001), observed that CPI numbers catering to specific segments of the population can be considered as partial indices only. These indices are not oriented to reflect a true picture of the price behaviour and effect of price fluctuations of various goods and services consumed by the general population in the country, over a period time. This Commission, therefore, recommended for compilation of CPI for rural and urban areas. Accordingly, the Central Statistics Office (CSO), Ministry of Statistics and Programme Implementation started releasing Consumer Price Indices (CPI) on base 2010=100 for all-India and States/ UTs separately for rural, urban and combined every month with effect from January, 2011.
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