Submitted by: Priyanka Sharma Mehak Sharma Sahil Goyal Raman Preet Singh

Sakhi saiyan toh khub hi kamat hai Mhangai dayan khai jath hai .

7-8 percent inflation is considered alarming.Inflation Inflation is the rate at which prices of goods and services increase in an economy. 2-3 percent inflation is low and favorable .

Wholesale Price Index (WPI) WPI is the index that is used to measure the change in the average price level of goods traded in wholesale market. .

WPI for a commodity= Price at the end-price in the beginning*100 price in the beginning Then weighted average of individual WPI is found.Calculation Of WPI Set of 435 commodities & their price changes are used for calculation. Base year is taken as 100. .

Calculation Of Inflation Rate WPI of year end-WPI of beginning of the endyear/ WPI of beginning of the year*100 .

.Advantages of WPI Represent wholesale trade transaction Available on weekly basis Measure inflation Quiet handy.

Disadvantages of WPI NonNon-specific in nature. Not a proper measure Does not include services .

Consumer Price Index Measures change in price level of consumer goods & services purchased by households. . Used by most of major economies.

CPI Includes Foods and beverages Housing Apparel Transportation Medical care Education Other goods and services .

Difference between CPI & WPI Little weights to food products in WPI Consideration Possibility of double counting WPI does not reflect actual price hike Insignificant goods are included in WPI .

How CPI is better than WPI More than 100 goods abstained to be important. WPI does not include retail margin Service sector is ignored .

Why India has not adopted CPI Risky and unwieldy CPI includes: CPI industrial worker CPI non-urban manual employees nonCPI agricultural laborers CPI rural labor Too much time lag in reporting CPI .