AICPIN-FAQ-2 6. When was compilation of CPI-IW started? The Consumer Price Index Numbers for Industrial Workers (CPI-IW) for 50 centres and All-India on base 1960=100 was started w.e.f. August, 1968 index on the basis of Weighting Diagram drawn by conducting the Family Living Survey (FLS) in 1958-59. The old series (1960=100) was replaced by a new series with base 1982=100 with effect from October, 1988. This was further updated and a new series with base 2001=100 has subsequently replaced the series on base 1982=100 with the release of index of January, 2006 and still continuing. 7. How different centres were selected for compiling the index? Keeping in view the main use of Consumer Price Index i.e., regulation of dearness allowance of the working classat local as well as national level, it was decided to compile the index at centre level as well as at all-India level. Therefore, at the time of selection of centres not only the importance of a particular centre was considered from the point of view of industrial employment but its representativeness in the all-India industrial employment was also given due importance. The present series (2001=100) of Consumer Price Index Numbers covers 78 important industrial centres as against 70 centres covered in the 1982 series of Consumer Price Index Numbers. These centres were firstly allocated among the factory, mining and plantation sectors in proportion to the total employment in each sector in the country. Secondly, the number of centres allocated to each sector was distributed amongst States on the basis of industrial employment in a state subject to a maximum allotment of 5 centres in a state in a sector. Lastly, the actual centres were selected on the basis of centrewise industrial employment in consultation with the respective State Governments. It may, however, be mentioned that after the centre was selected, workers belonging to all the 7 sectors were covered for this survey as against one predominant sector in a centre during 1960 series. Keeping in view the resources available, it has not been possible for Labour Bureau to cover larger number of centres and some old centres had to be dropped to select new developing centres. This issue had been considered by Technical Advisory Committee on Statistics of Prices and Cost of Living (TAC on SPCL) also and they decided that other centres if found useful, may be covered by the respective State Governments. 8. What are the requirements of a Consumer Price Index ? Firstly, it is essential to find out different items being consumed by the population and the relative importance of those items in their budgets. For this purpose a detailed family budget enquiry is conducted amongst the industrial population following well established sampling techniques at regular intervals. The Labour Bureau has so far conducted four such enquiries during 1958-59, 1971-72, 1981-82 and 1999-2000. These enquiries involved sample size determination, selection of workers’ families, canvassing of schedules, scrutiny of schedules, tabulation of results, preparation of weighting diagrams etc. On the basis of such enquiries, a list of items normally being consumed by the working class is prepared for regular collection of prices as well as index compilation. The second requirement of consumer Price Index is base year prices for each of the items listed for price collection. This set of prices is collected after organising the price collection work in all the centres through selection of markets, listing retail shops in the markets, fixing specifications and units, fixing price collection day and time for one full year which when averaged over months provides base year prices. Thereafter, prices for listed items are collected regularly every month for the compilation of index numbers. From the results of working class family income and expenditure survey, proportion of expenditure on each of the items consumed is worked out and is utilised for assigning weights to different items. Thus, an index is a weighted average of the relative price change of the list of items included in the index. 9. How many families were covered from each centre for income and expenditure survey? The centre-wise sample size was determined so as to provide sufficiently precise estimate of the consumption pattern of the population for a given centre. For this purpose, the centres were divided into two categories namely, centres which were common with the 1982 series and those which were new centres. For 69 centres common with 1982 series, subsample-wise weighting diagrams were prepared and using centre level price data for 36 months period, i.e., from January, 1993 to July, 1995 sub-sample-wise consumer price indices were compiled. For each set of price data, sub-sample indices were used to work out the co-efficient of variation (C.V) and the average of these 36 C.V. estimates was calculated. The sample size was then fixed for each of the 69 centres. For the new centres, sample size was determined after taking into consideration the working class population at these centres and C.V. observed at a nearby or similar centre. The minimum sample size for a centre was fixed at 216 for Schedule ‘A’ (Income & Expenditure) and 84 for Schedule ‘B’ (House Rent) for operation convenience. The sample size for other centres was adjusted to multiples of 216 and 84 respectively to achieve equitable distribution of work amongst field investigators. The sample size varied at different centres from 216 to 3024. 10. In what way families were selected for family budget enquiry ? Preliminary enquiries were conducted by National Sample Survey Organisation (NSSO) during the year 1999 with a view to define the boundaries of each centre, examine the feasibility of adopting tenement or payroll method of sampling and collect information regarding concentration of working class population of different sectors, availability of addresses of the workers with the establishments, etc. Basically, in each centre the working class families were selected through standard sampling techniques in two stages. In the first stage, a sample of blocks (areas or localities having 150 to 200 houses) or a sample of establishments was selected. In the second stage, a sample of workers’ families was drawn from the selected blocks or establishments. Tenement method of sampling was preferred only in those cases where payrolls/addresses of working class were not maintained properly by the establishments and workers of a particular sector were concentrated in a limited area. Efforts were also made to draw the samples in such a way as to give representation to different characteristics of population having bearing on consumption pattern such as state of origin, expenditure class, single member families, employment, type of ownership etc., wherever possible. For this survey, family was defined as consisting of persons generally related by blood, marriage or adoption, usually living together and/or are being served from the same kitchen and pooling a major part of their income and/or depending on a common pool of income for a major part of their expenditure. Relatives or friends who were absent temporarily were treated as family members. Servants, temporary guests and paying guests who pay a fixed amount for boarding, lodging were not considered as family members in brief, family was taken as the sample unit and not the household. Source:Labour bureau Share and Care For Latest Updates Always visit http://satish24k.blogspot.in For Beautiful Wallpapers Always visit http://24ksatish.blogspot.in |
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