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It has basically established a relationship between WPI and CPI on136 items.“The CPI baskets have some items, which are common to both WPI and CPI baskets.The paper ‘Backcasting of CPI’ is co-authored by CSO Director General Ashish Kumar, and other officials Dilip Kumar Sinha and Soumya Gupta.The CPI inflation data prior to 2011 is only an estimation and not the actual number.CPI that tracks inflation at the consumer level has become the key measure of inflation used by the RBI for the monetary policy action.“We have estimated retail inflation for three years prior to 2011 and using the same methodology, we will extend it up to 2004-05.The exercise has been done to primarily help RBI in the monetary policy action asthey want a longer series,” said a CSO official.The CSO, under the ministry of statistics and programme implementation, has made the backward estimation using the wholesale price index (WPI).

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Indices for these items were predicted using the indices behavior of WPI and their inherent fluctuations and trends.And the indices for remaining items were predicted using their own inherent behaviour only,” a paper that conceptualises the back series data, said.

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