Second Covid-19 wave to delay base revision exercise for outdated CPI, GDP

by Nidhi Bhati

The second Covid-19 wave is expected to delay consumer expenditure survey in 2021-22, reported Business Standard. Consequently, base revision exercise for the country’s key macro-economic indicators such as consumer price index (CPI) and gross domestic product (GDP) will further get delayed, raising data quality concerns. Macro economic indices need to be revised every five years to keep up with the structural changes in spending patterns. Economists, too, have raised alarm about the outdated macro data as it impacts effective policy making. Earlier, revision of CPI and GDP base years from 2011-12 and 2012, respectively, was to happen on the outcomes of the consumer expenditure survey of 2017-18. But, the government junked the survey sometime back.