RBI publishes working paper assessing gaps in state-level inflation data during the Covid-19 period. Highlights discontinuities in price index compilation due to lockdowns and data collection challenges.
RBI Paper Highlights Data Gaps in State Inflation
The Reserve Bank of India has released Working Paper No. 01/2026 titled “Data Gaps in State-Level Inflation: An Assessment for the Covid Period”, authored by Purnima Shaw and R. K. Sinha. The paper evaluates disruptions in the collection of price data during the pandemic-induced lockdowns.
It notes that official state-level inflation indices faced challenges due to closure of markets, non-availability of price reporters, and reliance on imputed values. This compromised the accuracy and comparability of inflation measures across states, affecting monetary and fiscal policy calibration.
The findings are relevant for legal and policy practitioners dealing with input cost disputes, compensation claims, or sectoral regulation where inflation indices serve as benchmarks. Future methodologies may be revised under the new National Statistical Framework, enhancing transparency and coverage.
