{"id":43327,"date":"2024-11-08T07:42:54","date_gmt":"2024-11-08T02:12:54","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=43327"},"modified":"2025-05-06T01:38:31","modified_gmt":"2025-05-05T20:08:31","slug":"india-adjusts-release-time-for-cpi-and-iip-data-to-align-with-market-hours","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/india-adjusts-release-time-for-cpi-and-iip-data-to-align-with-market-hours\/","title":{"rendered":"India Adjusts Release Time for CPI and IIP Data to Align with Market Hours"},"content":{"rendered":"<h2><strong>What\u2019s in today\u2019s article?<\/strong><\/h2>\n<ul>\n<li>Why in News?<\/li>\n<li>What is Consumer Price Index (CPI)?<\/li>\n<li>What is Index of Industrial Production (IIP)?<\/li>\n<li>Significance of CPI and IIP data<\/li>\n<li>Change in the timings for release of CPI inflation and IIP data<\/li>\n<\/ul>\n<h2><strong>Why in News?<\/strong><\/h2>\n<p>The Ministry of Statistics and Programme Implementation (MoSPI) has changed the release time of retail inflation (CPI) and factory output (IIP) data from 5:30 pm to 4 pm on the 12th of each month. This adjustment aims to give more time for data analysis on the release day and aligns with the closing hours of India\u2019s major financial markets.<\/p>\n<h2><strong>What is Consumer Price Index (CPI)?<\/strong><\/h2>\n<ul>\n<li><strong>CPI is a metric that measures retail inflation by collecting data on the prices of goods and services that are consumed by the retail population of the country.<\/strong><\/li>\n<li>The <strong>National Statistical Office (NSO)<\/strong>, Ministry of Statistics and Programme Implementation releases CPI.<\/li>\n<li>CPI is released for all-India and States\/UTs separately for rural, urban and combined (national).<\/li>\n<li>Currently, CPI is calculated using 2012 as a base year.\u00a0<\/li>\n<li>Items for the CPI basket of goods and services classified across categories.\u00a0<\/li>\n<li>Few of the categories are; food and beverages, clothing, housing, fuel and light, recreation and etc.\u00a0<\/li>\n<li>All categories are assigned weights (as shown in the diagram).<\/li>\n<li>Currently, CPI is calculated by taking into consideration 299 items.<\/li>\n<\/ul>\n<figure class=\"image image_resized\"><img decoding=\"async\" src=\"https:\/\/vajiram-prod.s3.ap-south-1.amazonaws.com\/CPI_Weight_Revised_Series_e9837c7cfd.webp\" alt=\"CPI- Weight Revised Series.webp\" \/><\/figure>\n<h2><strong>What is Index of Industrial Production (IIP)?<\/strong><\/h2>\n<ul>\n<li><strong>About<\/strong>\n<ul>\n<li>The IIP number measures the industrial production for the period under review, usually a month, as against the reference period.<\/li>\n<li>There is a lag of six weeks in the publication of the IIP index data after the reference month ends.<\/li>\n<li>It is currently calculated using 2011-2012 as the base year.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Institution involved<\/strong>\n<ul>\n<li>National Statistical Organisation (NSO) under the Ministry of Statistics and Programme Implementation (MoSPI) releases the IIP data.\u00a0<\/li>\n<\/ul>\n<\/li>\n<li><strong>IIP Index Components<\/strong>\n<ul>\n<li>IIP is a composite indicator that measures the growth rate of industry groups classified under:<\/li>\n<li><strong>Broad sectors<\/strong>, namely, Mining (14.4%), Manufacturing (77.6%) and Electricity (8%)<\/li>\n<li><strong>Use-based sectors<\/strong>, namely Basic Goods, Capital Goods and Intermediate Goods etc.<\/li>\n<li>These Eight Core Industries mentioned in above section comprise 40.27 percent of the weight of items included in the IIP.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2><strong>Significance of CPI and IIP data<\/strong><\/h2>\n<ul>\n<li><strong>Consumer Price Index (CPI): Key Inflation Indicator<\/strong>\n<ul>\n<li>CPI tracks changes in the prices of goods and services purchased by households, serving as a key macroeconomic indicator of inflation.\u00a0<\/li>\n<li>It is widely used by governments and central banks for inflation targeting, monitoring price stability, and as deflators in national accounts.\u00a0<\/li>\n<li>Inflation, measured as the year-on-year change in CPI, indicates the rate of price increase for a specific basket of goods.\u00a0<\/li>\n<li>Currently, the CPI (combined) uses the base year 2012, updated from the base year 2010 in January 2015.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Index of Industrial Production (IIP): Measure of Industrial Activity<\/strong>\n<ul>\n<li>IIP gauges the level of industrial production in an economy, reflecting short-term changes in the output volume of selected industrial products relative to a base period (currently 2011-12).\u00a0<\/li>\n<li>The IIP assesses industrial growth across three sectors: Mining, Manufacturing, and Electricity, along with use-based categories like basic goods, capital goods, intermediate goods, consumer durables, and non-durables.\u00a0<\/li>\n<li>It is monitored as a short-term indicator of industrial activity until the Annual Survey of Industries and National Accounts Statistics are released.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2><strong>Change in the timings for release of CPI inflation and IIP data<\/strong><\/h2>\n<ul>\n<li><strong>About the news<\/strong>\n<ul>\n<li>India&#8217;s Ministry of Statistics and Programme Implementation is changing the release time for key economic data.\u00a0<\/li>\n<li>The Consumer Price Index and Index of Industrial Production will now be released at 4 pm on the 12th of each month.\u00a0<\/li>\n<li>This new time aligns with the closing of major financial markets in India. The ministry aims to enhance transparency and accessibility with this change.\n<ul>\n<li>The CPI and IIP indicators are essential for economic policy and market decisions.\u00a0<\/li>\n<li>If the 12th falls on a holiday, CPI data will be released the following working day, while IIP data will be released the prior working day.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<li><strong>Why was the data release timing kept at 5:30 pm earlier?<\/strong>\n<ul>\n<li>In 2013, reports of data leaks led the Ministry to shift the release time of retail inflation and IIP data to 5:30 pm from July that year, to avoid influencing trading during market hours.\u00a0<\/li>\n<li>Prior to this, the data was released around 11-11:30 am, which significantly impacted forex and bond markets.\u00a0<\/li>\n<li>The change aligned with market closures, as forex and bond markets close at 5 pm.\u00a0\n<ul>\n<li>While retail inflation data has always been released on a monthly basis, the wholesale inflation data was released weekly till December 2012.\u00a0<\/li>\n<li>Now, it\u2019s released on the 14th of every month around noon.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<li><strong>Concerns About New Timing\u2019s Market Sensitivity<\/strong>\n<ul>\n<li>While the new timing coincides with stock market closing, analysts note that government bond and foreign exchange markets remain open until 5 pm, meaning the data could still impact active trading in these markets.\u00a0<\/li>\n<li>The Ministry emphasizes that the timing aligns with MoSPI\u2019s commitment to transparency and accessibility.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<hr \/>\n<h3><strong>Q.1. Why did MoSPI change the CPI and IIP data release timing?<\/strong><\/h3>\n<p>The Ministry of Statistics advanced the CPI and IIP data release to 4 pm to align with the closing time of major financial markets, enhancing accessibility and minimizing market disruption.<\/p>\n<h3><strong>Q.2. What are the concerns about the new data release timing?<\/strong><\/h3>\n<p>Analysts are concerned that, while stock markets close at 4 pm, the bond and forex markets remain open until 5 pm, making the new release time potentially sensitive to market fluctuations.<\/p>\n<p><strong>News:<\/strong> <a href=\"https:\/\/indianexpress.com\/article\/business\/why-have-timings-for-release-of-cpi-inflation-and-iip-data-been-advanced-and-the-likely-problems-with-this-change-9656069\/\" target=\"_blank\" rel=\"nofollow noopener\">Why have timings for release of CPI inflation and IIP data been advanced, and the likely problems with this change<\/a> | <a href=\"https:\/\/eaindustry.nic.in\/eight_core_infra\/ICI_Compilation_Methodology.pdf\" target=\"_blank\" rel=\"nofollow noopener\">Office of Economic Adviser<\/a> | <a href=\"https:\/\/mospi.gov.in\/documents\/213904\/0\/CPI-Changes_in_the_Revised_Series.pdf\/a558cbf8-afa8-3711-112b-4da6b6ce0124?t=1595850076188\" target=\"_blank\" rel=\"nofollow noopener\">Ministry of Statistics and Programme Implementation<\/a> | <a href=\"https:\/\/economictimes.indiatimes.com\/news\/economy\/policy\/mospi-shifts-cpi-and-iip-release-time\/articleshow\/114984499.cms?from=mdr\" target=\"_blank\" rel=\"nofollow noopener\">Economic Times<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Ministry of Statistics has changed the release time for India&#8217;s CPI and IIP data from 5:30 pm to 4 pm. This shift is intended to improve accessibility and align with market closures.<\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18],"tags":[],"class_list":{"0":"post-43327","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-upsc-mains-current-affairs","7":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/43327","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=43327"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/43327\/revisions"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=43327"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=43327"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=43327"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}