A new wholesale price index (WPI) series is likely to start from next month, R P Singh, secretary, department of industrial policy and promotion (DIPP) said on Tuesday. The industry secretary said the department is ready with new inflation index and needs approval from the cabinet secretary.

The Committee of Secretaries (CoS), headed by cabinet secretary K M Chandrasekhar, is likely to give a final shape to the new index next week and is expected to be introduced in August. 

The new index would provide a more realistic picture of price rise and its impact on people “The new Wholesale Price Index series is likely to be introduced next month and will reflect current prices,” Singh said while answering question to reporter on the sidelines of the CII summit on 10 percent growth along with the cabinet secretary K M Chandrasekhar.

However, he declined to give a particular date for the adoption of teh new index.

The present inflation rate has been calculated on a basket of 435 items. The new inflation index will have 250 more items covered in its basket.

The  new basket of 685 goods will include consumer goods like mobile phones and LCD televisions, the industry secretary said.

It will have 2004-05 as the base year, changed from 1993-94 base year for calculating inflation.

The cabinet secretary also hoped that inflation would come down to 5 to 6 percent by December this year. “Monsoon rains, which are critical to cooling food prices, are likely to be normal to good this year,” Chandrasekhar said.