Accurate Price Index

Inflation index indicates the overall price situation. It determines the purchasing capacity of a currency. Unfortunately, the index price in India is not in accordance with the actual price trend. While the prices of essential commodities are high, how the price index can be assumed at lower level?

Experts in statistical analysis must make a survey of the market and find out the exact reason for considerable lacuna in showing the correct picture of the price.

When the anomalies in respect fluctuation in prices crisis can be solved? Who should take action. Why remedial measures could not be taken at right direction at right time with right purpose.

The solution is simple. We must conduct a research in respect of prices. Contact consumers and take their opinions regarding prices as they regularly buy commodities and are well aware of the prices. Following measures will be helpful:

Classification of commodities – vegetables, fruits, and consumer durables.

• Analyze the causes pertaining to various in prices
• Taking the opinions of economists to adopt prudent methods of determining price index
• Analyzing the industrial scenario – increased or decreased cost of consumer goods
• Analyzing the agricultural products increased or decreased cost due seasonal variations.
• Prevailing prices of fuel prices as it has influence in respect of transportation costs.
• Involvement of middlemen – from Manufacturer to the ultimate consumer
• Involvement of middlemen – from Farmers to the ultimate consumer

If we take into above factors into consideration, prudently, price index can be arrived as accurately as possible.