How is the new monthly inflation data computed?

On November 12, the government will come out with the first monthly inflation figure for the wholesale price index (WPI). However, there is still confusion on whether the government will also revamp the number of products and the weightages. CNBC-TV18's Gopika Gopakumar reports all the confusions in respect to it and gives a detailed clarification for it.

Below is a verbatim transcript of Gopika Gopakumar's comments on CNBC-TV18. Also watch the accompanying video.

The first confusion is whether the inflation data to be release this week will be the old index calculated on a monthly basis or will it be new index with new products. Government officials say that it is going to be the old index which is represented on a monthly interval.

The second confusion is whether this new index will be as on October 31 or will it be computed on an average for the entire month, which is October. This index, which will be released this week, will be an average of the weekly numbers but will be computed for the month of October.

There is also confusion on when the new index will be revamped and when that will be launched in the country. The new series will be launched in March next year and the number of products will be increased from 500 to 700. The weightage of different products that is manufacturing, primary articles and fuel will vary in this new WPI with manufacturing getting more weightage than primary articles and fuels.