Consumer Food Price Index (CFPI)
- May 14, 2022
- Posted by: OptimizeIAS Team
- Category: DPN Topics
Consumer Food Price Index (CFPI)
Subject: Economy
Section: Inflation
Concept:
It is a measure of change in retail prices of food products consumed by a defined population group in a given area with reference to a base year.
- The Central Statistics Office (CSO),Ministry of Statistics and Programme Implementation (MOSPI) started releasing Consumer Food Price Indices (CFPI) for three categories -rural, urban and combined – separately on an all India basis with effect from May, 2014.
- Like Consumer Price Index (CPI), the CFPI is also calculated on a monthly basis and methodology remains the same as CPI.
- The base year presently used is 2012. The CSO revised the Base Year of the CPI and CFPI from 2010=100 to 2012=100 with effect from the release of indices for the month of January 2015.
- CFPI (Rural/ Urban/ Combined) is compiled as the weighted average of the Cereals and Productssub group of CPI for each of those categories – Rural/ Urban/ Combined. Modified weights of these Sub-groups within CFPI are as follows:
All India Weights of different Sub-groups within Consumer Food Price Index
| Subgroups | Description | Rural | Urban | Combined |
| a. | Cereals and products | 36.71 | 28.51 | 34.16 |
| b. | Pulses and products | 6.25 | 6.11 | 6.20 |
| c. | Oils and fats | 8.98 | 9.44 | 9.13 |
| d. | Egg, fish and meat | 6.50 | 7.38 | 6.77 |
| e. | Milk and products | 16.53 | 21.59 | 18.10 |
| f. | Condiments and spices | 4.10 | 3.79 | 4.00 |
| g. | Vegetables | 12.64 | 12.93 | 12.74 |
| h. | Fruits | 3.65 | 6.14 | 4.43 |
| i. | Sugar etc. | 4.64 | 4.11 | 4.47 |
| Total Weights | 100.00 | 100.00 | 100.00 |
Inflation rates (on point to point basis i.e. August, 2014 over August, 2013), based on general Indices and CFPIs, are issued by CSO.
Globally, food price index is being released by Food and Agriculture Organization of the United Nations. The FAO Food Price Index is a measure of the monthly change in international prices of a basket of food commodities. It consists of the average of five commodity group price indices (Cereal, Vegetable Oil, Dairy, Meat and Sugar) weighted with the average export shares of each of the groups for 2002-2004.
After the revision of Whole Sale Price Index (WPI) with the new base year 2011-12, a new “WPI Food Index” is being compiled by combining the “Food Articles” under “Primary Articles” in WPI and “Food Products” under “Manufactured Products” in WPI. Together with the Consumer Food Price Index released by Central Statistics Office, this would help monitor the price situation of food items better.