There will be a change in the formula for calculating inflation data!

Inflation Data: There is a possibility of a major change in the formula for calculation of inflation in India soon. Household Consumption Expenditure Survey (HCES) are indicating this. Actually, there is an inflation basket to calculate inflation. Inflation rate is calculated on the basis of fluctuations in the prices of the products put in this basket. But, there are many such products in this basket which are no longer in trend. According to media reports, efforts are being made to remove these products. Along with this, now such products will be added to it on which people are spending decently. These changes have been made in the basket from time to time. For example, this basket includes many products like VCR, VCD, DVD player. Whereas, people are spending big money on podcasts and play stations.

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Their sentiments will also be affected

Many new products have been added to the report of the Household Consumption Expenditure Survey. This includes mobile recharge, first hand or second hand purchase, repair and maintenance, expenditure on Netflix, Amazon Prime and other streaming services, expenditure on e-books, audio books, online learning courses etc. The new products include power bank, hair dryer, hair straightener, hair curler, hair trimmer, groomer, epilator, headphones, earphones, ear pods, Bluetooth devices, speakers and sanitizers which have become a necessity in every home since the Covid infection. being done. It is understood that this will help in calculating inflation in a comparative manner and the correct data will also be available to the people.

How is inflation calculated in India?

An important technique is used to determine the inflation rate in India, which is called the Return Rate or Inflation Rate formula. The inflation rate is determined by this formula. However, different formulas are used for this in different countries.