As the share of online channels in household spending is rising, the step could make the country’s retail inflation data more robust
In an effort to capture shifting consumer habits and address concerns that current data is outdated, the Centre will be sourcing data directly from ecommerce platforms, including Amazon and Flipkart, to revamp its benchmark inflation gauge, Reuters reported.
Since the share of online channels in household spending is rising, the move could make the country’s retail inflation data richer by accounting for prices on digital platforms. The report added that countries like the United States and South Korea integrate scanner and online prices into inflation measures.
While the statistics ministry is in discussions with the platforms to source the data directly, it has started scraping prices from ecommerce websites in 12 cities with populations above 2.5 million, the report emphasised. The Household Consumption Expenditure Survey (HCES) reflected that ecommerce is significant enough to be reflected in the consumer price index (CPI) basket, the report noted.
Emphasising that the main motive is to make the index more timely and representative, the report explained that the ecommerce platforms are being directed to share weekly average prices of goods with the government. The data will then ben cross-checked against a larger database. The report noted that the added data sources will be there in the computation of CPI, when the new series will be rolled out next year.
Data on airfares and streaming-media prices from online sources will also be included in the revamp of the index. The report explained that there are few major statistical upgrades being planned in the next two years, including a new gross domestic product (GDP) series with an updated base year of 2022-23. As a quarterly gauge of output in the services sector, the ministry is actively working on a new index of services production (ISP), the report emphasised.
