Which of the following are High Frequency Indicators of the Indian eco

Which of the following are High Frequency Indicators of the Indian economy ?

  1. Power Consumption
  2. IIP General Index
  3. 10-year G-sec yield

Select the correct answer using the code below.

1 only
1 and 2 only
2 and 3 only
1, 2 and 3
This question was previously asked in
UPSC CAPF – 2023
High-Frequency Indicators (HFIs) are economic data points that are released frequently (daily, weekly, monthly) and provide timely insights into the current state and trajectory of the economy.
1. Power Consumption: Measured daily/weekly/monthly, it is a good proxy for economic activity, especially industrial and commercial.
2. IIP (Index of Industrial Production) General Index: Released monthly, it provides a timely snapshot of the performance of the industrial sector, contributing significantly to overall economic assessment between quarterly GDP releases.
3. 10-year G-sec yield: A financial market indicator that reflects borrowing costs and market sentiment, updated constantly in real-time or daily.
All three indicators are monitored frequently by policymakers and analysts to gauge economic momentum and make quick assessments, fitting the definition of High-Frequency Indicators.
– High-Frequency Indicators provide timely data on economic activity.
– They are typically released more often than quarterly or annual data (daily, weekly, monthly).
– Power consumption, IIP, and G-sec yields are examples of such indicators in India.
Other examples of HFIs include GST collections (monthly), Purchasing Managers’ Indices (PMI – monthly), railway freight traffic (monthly), port traffic (monthly), vehicle registrations (monthly), bank credit growth (fortnightly/monthly), etc. These indicators are crucial for tracking cyclical changes and assessing the impact of recent events or policies on the economy in near real-time.