RBI releases working paper on data shortcomings in state-level inflation measurement during the Covid-19 period. Highlights reliance on imputed indices due to disrupted price collection.
RBI Study Flags Data Gaps in State Inflation During Covid
The Reserve Bank of India has published a working paper titled "Data Gaps in State-Level Inflation: An Assessment for the Covid Period," authored by Purnima Shaw and R. K. Sinha. The study evaluates the quality and availability of official inflation data across Indian states during the pandemic, when movement restrictions disrupted regular price collection.
It notes that many state-specific indices during 2020–21 were based on imputed or proxy data due to field-level data shortages. This raises concerns about the accuracy of sub-national inflation estimates used for policy decisions, social benefits, and wage revisions.
While not a regulatory pronouncement, the paper provides critical context for legal challenges involving inflation-linked contracts, compensation, or entitlements during the pandemic. Courts and tribunals may refer to such research to assess the reliability of statistical evidence in future disputes.
