Consumer Price Index :
Consumer Price Index Consumer Price Index measures the average change in prices paid for a fixed market basket of consumer goods and services over a stated period of time.
At the national level, there are four Consumer Price Index (CPI) numbers.
CPI for Industrial Workers (IW)
CPI Urban Non-Manual Employees
CPI Agricultural labourers
CPI Rural labour
Broad Groups of CPI :
Broad Groups of CPI Food, Beverages and Tobacco
Fuel & Light
Housing
Clothing & Footwear
Miscellaneous
Formula for calculating CPI :
Formula for calculating CPI Calculating CPI for single item
Calculating CPI for multiple item
Wholesale price index :
Wholesale price index WPI is the index that is used to measure the change in the average price level of goods traded in wholesale market.
Commodities are grouped into :-
1. Primary Articles2. Fuel, Power, Light & Lubricants3. Manufactured Products
Calculation of WPI & Inflation rate :
Calculation of WPI & Inflation rate Formula for calculating WPI
WPI = Price of current year – Price of base year / Price of base year x 100.
Calculation for inflation rate :-
(WPI of end of year – WPI of beginning of year)/WPI of beginning of year x 100
References :
References www.wikipedia.com
www.money.rediff.com
www.finblog.com
www.answers.com
Slide 8:
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