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Friday, August 30, 2013
New index is too narrow - RBI Governor
MUMBAI: The new series of consumer price index (CPI) is not enough for a robust statistical analysis of prices, Reserve Bank Governor D Subbarao said on Friday.
He also said the new CPI has an excess focus on food prices, which has a 50% weight. House rents, which account for 10%, are also a cause for concern given doubts over the efficacy of the prices, he added.
"The new CPI has only 19 data points which is not sufficient for a statistically robust analysis," Subbarao, who demits office on September 5, said while speaking at the Statistics Day conference at the RBI headquarters here.