Separate index required to monitor services inflation: Parliamentary panel

Rising cost of services not fully reflected in CPI

by Natasha Nadkar

The Parliamentary standing committee on finance has asked the government to introduce a separate price index for the services sector. According to the committee report tabled in Parliament, accurate data on services inflation is crucial for understanding relative price movements and inter-sectoral terms of trade. The rising cost of education, healthcare, entertainment and transportation is not entirely reflected in CPI based inflation. The panel has hence recommended a separate and distinct index called ‘Business Service Price Index’ for better data on prices, production and quality of services.

References
1. http://economictimes.indiatimes.com/news/economy/policy/set-up-index-to-monitor-services-inflation-parliamentary-panel-to-govt/articleshow/57716757.cms
CMIE STATISTICS
Unemployment Rate
Per cent
5.8 -0.1
Consumer Sentiments Index
Base September-December 2015
96.0 -0.2
Consumer Expectations Index
Base September-December 2015
96.2 -0.3
Current Economic Conditions Index
Base September-December 2015
95.5 0.0
Quarterly CapeEx Aggregates
(Rs.trillion) Jun 17 Sep 17 Dec 17 Mar 18
New projects 2.50 1.22 1.34 2.91
Completed projects 0.87 1.24 1.11 1.35
Stalled projects 2.68 0.69 0.88 3.41
Revived projects 0.23 0.34 0.22 0.24
Implementation stalled projects 0.76 0.78 0.71 1.05
Updated on: 21 Jun 2018 8:20PM
Quarterly Financials of Listed Companies
(% change) Jun 17 Sep 17 Dec 17 Mar 18
All listed Companies
 Income 9.6 7.9 11.9 10.7
 Expenses 9.9 9.0 13.0 17.3
 Net profit -19.8 -18.0 -14.3 -78.4
 PAT margin (%) 5.3 5.5 4.8 1.4
 Count of Cos. 4,512 4,498 4,488 4,231
Non-financial Companies
 Income 10.2 8.2 13.3 12.4
 Expenses 10.5 8.1 12.3 13.0
 Net profit -25.1 -6.0 13.1 1.4
 PAT margin (%) 5.2 6.2 6.4 6.8
 Net fixed assets 9.2 11.9
 Current assets 78.6 8.4
 Current liabilities 11.0 10.7
 Borrowings 10.4 1.4
 Reserves & surplus 5.2 8.1
 Count of Cos. 3,480 3,467 3,471 3,281
Numbers are net of P&E
Updated on: 21 Jun 2018 8:21PM
Annual Financials of All Companies
(% change) FY15 FY16 FY17 FY18
All Companies
 Income 5.6 1.8 5.8 15.1
 Expenses 5.7 1.9 5.8 21.9
 Net profit 0.0 -9.8 26.7 -75.8
 PAT margin (%) 3.0 2.8 3.5 1.5
 Assets 9.5 10.1 7.2 16.3
 Net worth 8.5 11.3 6.9 11.2
 RONW (%) 5.8 4.9 5.9 2.0
 Count of Cos. 25,972 24,188 21,604 134
Non-financial Companies
 Income 4.8 0.9 5.6 12.1
 Expenses 5.0 0.3 5.9 11.6
 Net profit -8.2 19.5 21.8 12.2
 PAT margin (%) 2.0 2.4 3.0 11.7
 Net fixed assets 13.3 17.3 6.3 23.3
 Net worth 7.0 12.0 5.6 6.5
 RONW (%) 4.6 5.1 6.0 15.0
 Debt / Equity (times) 1.1 1.1 1.0 0.3
 Interest cover (times) 1.9 1.9 2.1 11.5
 Net working capital cycle (days) 66 65 62 -24
 Count of Cos. 21,193 20,267 18,054 92
Numbers are net of P&E
Updated on: 20 Jun 2018 12:40PM