"There is scope for significant improvement in the construction of WPI there is much more to data analysis than simple mathematical formulation between inflation and rate cuts," RBI Governor D Subbarao said.
Noting that the efficiency of monetary policy instruments depend on quality of statistical data and efficacy of analysis, Subbarao highlighted the need to further refine the calculation of WPI and IIP data.
"The data (on WPI and IIP) should be upgraded on a continuous basis (also) there is a need to improve the quality of statistical information," the Governor said.
The government releases WPI-inflation data on a weekly basis with a lag of two weeks and the IIP on a monthly basis.
The WPI-inflation fell to (-)1.30 per cent for the week-ended June 20 as compared to (-)1.14 per cent in the previous week.
Subbarao also emphasised the need for effective collection of accurate employment data in order to improve the performance of monetary policy.
He said that the country did not have an effective nationwide statistics on employment data, which is necessary to improve the monetary policy management.
