New Delhi: The government accepted that the new index for calculation of inflation has scope for improvements. With complaints on Wholesale Price Index (WPI) released 18 months back, the government has formed a committee to review the index. This committee will also suggest the ways to collect data.   

According to sources, for amendments to WPI, economic changes since 2004-05 will be taken into consideration. WPI figures are considered for calculating inflation in the country.  

Recently, errors were found in WPI figures. Economists and the officials of RBI have also criticized the exiting process of calculating inflation. 

Sources from monetary policy and promotion department have said that Planning Commission member Saumitra Chaudhury-led new committee has been formed in this regard. The committee comprising 31 members will work for making more reliable WPI.

Along with this, the government is also mulling the alternatives to hire single agency for data collection of WIP and IIP. The new committee has been also directed to look out for such agency. The committee will also be selecting base year for the new official series of Wholesale Price Index (WPI), Producer Price Index (PPI) and Business Services Price Index (BSPI). 
During the review of indexes, the committee will also be doing estimation of commodity basket.