Reweighting: In this method, we compute price change, calculate standard deviation of price change for WPI-All Commodities as well as each commodities over a period of time, calculate historical standard deviation for each commodity as the difference between WPI-All Commodities standard deviation and standard deviation of that commodity. Then, we calculate final weight as the reciprocal of historical standard deviation, multiplied by initial weight.
5  * and ** indicate that the core inflation standard deviation is lower and significantly different from the standard deviation of headline inflation at 1% and 5% level of significance, respectively. BIS Review 5/2010  7  III. Way forward  22. The divergence between alternative inflation measures complicates the conduct of monetary policy in India.