Srinagar: Jammu and Kashmir’s inflation rate is higher than the national average, according to the latest state Economic Survey Report.
“The average inflation rate at all India level from April to December 2014 (on consumer price index for industrial workers or CPI-IW) was 6.2%, while at the J&K level it was registered at 7.9%,” reads the report.
The inflation-based on CPI-IW is accepted as an appropriate index to determine the impact of price rise on the cost of living. CPI-IW, which is based on retail prices, is the index used to determine dearness allowances of employees in public and private sectors. It is compiled in terms of general standards and guidelines set by International Labour Organisation (ILO) for its member countries.
At all-India level, CPI-IW is the weighted average of 78 centres. From J-K, it’s compiled for Srinagar centre, comprising four markets—Habba Kadal, Zaina Kadal, Maharaja Bazaar and Pampore.
“The average index at all India level for the year 2013-14 has increased by 21 points from the previous year which recorded the index point at 215. The inflation at all India level was 9.76 % in 2013-14 (as compared to 10.26% in 2012-13).”
The relative increase in CPI-W at J-K level during the same period increased by 14 points, registering the inflation rate of 7.25% in 2013-14, says the report.
The inflation rate at an average of 6 years–2008-09 to 2013-14—in the state has been 8.63% as against 10.03% at the all India level.
“The trend at the country level during the six years has been erratic as it registered the lowest of 8.33% in 2011-12 and the highest of 12.41% in 2009-10.”
On the other hand, the report says, the inflation rate for J-K varied between 8.64% and 8.76% during the period.
“The average inflation rate at all India level from 2008-09 to 2013-14 was 10.03% while at the state level it stood at 8.63%.
The inflation behaviour under ‘Food Group’ head, the report said, has been fluctuating for the year 2013-14 and also for nine months of 2014-15 for the state.
While at all India level, the inflationary rate has not recorded the considerable change during the period, it burgeoned in J-K to 14.35% in January 2014 from 3.03% in June 2013.
“On the other hand at India level, the inflation rate has marginally registered the increase or decrease, recording the highest of 16.17% in November 2013 and the lowest of 2.56% in November 2014.
“Comparing the inflation rate on average basis, it is seen that the average index has been 9.11 % for 2013-14 for J&K as against 12.37% at all India level,” the report says.
Price Index is a statistical device to measure the relative change in price level with reference to time, geographical location and other characteristics.
Besides CPI-IW, there are other groups of consumers applied for measuring the inflation—Consumer Price Index for Rural Labourers (CPI-RL) and Consumer Price Index for Agricultural Labourers (CPI-AL). There was another index known as Consumer Price Index for Urban Non-Manual Employees (CPI-UNME) but it was discontinued in 2008.
For CPI-IW, the data is collected for approximately 392 consumption items from 299 markets of the India.
The CPI-AL at JK level, the report says, was 9.74% in April 2013 and scaled up to 10.45% in October 2013.
Thereafter, the report says, it has been fluctuating between 9.09% and 3.73% at all India level; it was 12.83% in April 2013 and 14.73% in November 2013, while it marginally declined to 7.31% in April 2014.
In terms of CPI-RL at state level, highest of 11.59% was recorded in June 2013 and the lowest 2.66% in February 2014. “The food inflation trend in the first quarter of 2014 has increased from 7.13% to 7.35% at state level at all India level, it ranged between as high as 14.54% in November 2013 and as low as 6.89% in February 2014.”