Explain Consumer Price Index and Wholesale Price Index , also write their formulae.

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Solution

Dear student,

Consumer Price Index measures the changes in the cost of living in which retail prices of consumer goods and services are obtained.

$C P I = \frac{Σ P_{1} Q_{0}}{Σ P_{0} Q_{0}} \times 100$

Wholesale Price Index measures the overall changes in the price levels in the economy.

Regards

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Explain Consumer Price Index and Wholesale Price Index , also write their formulae.

Dear student, Consumer Price Index measures the changes in the cost of living in which retail prices of consumer goods and services are obtained. CPI = ΣP1Q0Σ P0Q0×100 Wholesale Price Index measures the overall changes in the price levels in the economy. Regards