RBI Working Paper No. 01/2026: Data Gaps in State-Level Inflation: An Assessment for the Covid Period
Distilled Policy Brief
- The Reserve Bank of India published a working paper addressing data gaps in State-level inflation during the Covid period by utilizing the Inflation Expectations Survey of Households (IESH).
- Official State-wise inflation figures remained unavailable for four specific pandemic months: April and May 2020 and April and May 2021.
- The paper derived State-wise CPI-U inflation estimates for these months using IESH granular data, centre-wise urban consumers' inflation perceptions, expectations, and past realized inflation.
🎯 Prelims High-Yield Examination Points
State-wise official inflation figures were unavailable for four pandemic months: April and May 2020 and April and May 2021. The RBI Working Paper utilized the Inflation Expectations Survey of Households (IESH) to derive State-wise CPI-U inflation estimates for these gaps.
⚖️ Mains Analytical & Syllabus Linkages
Examine the challenges of statistical data collection during public health emergencies like the Covid-19 pandemic and the role of alternative granular datasets such as the Inflation Expectations Survey of Households (IESH) in addressing macroeconomic data gaps.
🎯 UPSC Prelims Practice Drill
With reference to the Reserve Bank of India (RBI) Working Paper titled 'Data Gaps in State-Level Inflation: An Assessment for the Covid Period', consider the following statements: 1. Official State-wise inflation figures remained unavailable for four specific pandemic months: April and May 2020 and April and May 2021. 2. The paper utilized the Inflation Expectations Survey of Households (IESH) granular data to derive State-wise CPI-U inflation estimates for these missing months. Which of the statements given above is/are correct?
- [A] 1 only
- [B] 2 only
- [C] Both 1 and 2
- [D] Neither 1 nor 2
▶ Reveal Official Answer & Analytical Explanation
Both statements are correct according to the RBI Working Paper. Official State-wise inflation figures remained unavailable for four specific pandemic months (April and May 2020 and April and May 2021), and the researchers bridged this data gap by utilizing the IESH granular data along with centre-wise urban consumers' inflation perceptions, expectations, and past realized inflation to derive State-wise CPI-U estimates.
🏛️ Historical Twin PYQ Anchor (2021)
Consider the following statements regarding the "National Clean Air Programme (NCAP)": 1. It is implemented by the Ministry of Environment, Forest and Climate Change. 2. Central Pollution Control Board acts as the sole regulatory executive body.