New monthly inflation index by mid-Nov

ndia plans to release wholesale price inflation data on a monthly basis from end-October or mid-November, and says the new reading will include a larger number of items and better reflect prices.

A senior official at the Indian Commerce and Industry Ministry involved in developing the new data series said on Tuesday the current weekly Wholesale Price Index (WPI) would be discontinued.

"The (new) series is going towards finalisation. When we switch over to monthly data, there will be no need for the weekly data," he told. The new index would be based on 2004/05 prices.

The official said the government would also release weekly price data for primary articles, which includes food, non-food products and minerals, after it switches over to a monthly reading.

Indian inflation jumped to a 13-year high in June after a 10 percent increase in local fuel prices and in mid-August was ruling just below an annual 12.5 percent.

The widely watched WPI rose 12.40 percent in the 12 months to August 16, below the previous week's annual rise of 12.63 percent.

But there has been criticism that the data underestimate price pressures in the Asia's third-largest economy.

Policy makers say monthly WPI data in tandem with weekly numbers for primary articles would help the central bank better calibrate its monetary policy decisions.

The sharp increase in the inflation rate in the past few months has forced the government and the central bank to raise rates, tighten liquidity and cut taxes to rein in soaring prices to avoid voter anger during state and federal polls.

India is also hoping to bring out a new urban Consumer Price Index (CPI) in April or May next year to give a more accurate and harmonised picture of prices in towns and cities.