|Q .1||What we mean by base year?|
|Ans.||The index reference period is usually called the base year, it often differs both from the weight-reference period and the price reference period. This is just a matter of rescaling the whole time-series to make the value for the index reference-period equal to 100.|
|Q . 2||Why we need to change the base year?|
|Ans.||In compiling index numbers the older the weights the greater is the divergence between the
Current expenditure pattern and that of the weight reference-period. Annually revised weights are desirable but being expensive feature of an index, the base year is usually changed after a few years. Normally a year during which the family budget enquiry is conducted or a period not very distant from the survey period for which reliable price data are available is adopted as the base year. A period affected by developments of serious nature such as war is not adopted as the base year because it cannot be treated as a normal year economically.
|Q .3||What is the current base year used by Labour Bureau for compilation of Consumer Price Index Numbers for Industrial Workers?|
|Ans.||Presently, CPI-IW numbers are being complied with base year 2001=100.|
|Q .4||How many times the base year of CPI-IW has been revised in the CPI-IW in past?
The compilation of Consumer Price Index Numbers for Industrial Workers on uniform and scientific lines was started on base 1960=100 which was revised to 1982=100 and the existing series i.e. on base 2001=100.
|Q .5||Is there any plan in immediate future to revise the base year?|
|Ans.||An exercise/proposal of Base updation of CPI-IW from the existing period 2001=100 to a more recent period is likely to be started soon.|