In general, inflation is calculated by using
(i) wholesale price index
(ii) consumer price index
(iii) producers’ price index

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Solution

In general, inflation is calculated by using Wholesale Price Index.
Wholesale Price Index measures the relative changes in the prices of the commodities traded in the wholesale markets. It assesses situations of overall demand and supply in the market. It focuses on the rate of inflation in the economy.

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Similar questions

A consumer price index measures changes in

(i) retail prices

(ii) wholesale prices

(iii) producers prices

Consumer price index reflects______ inflation.

Consider the following statements:

1. WPI measure price rise at the wholesale level where wholesale means sale in large quantities and meant for resale.

2.Producer Price Index means the prices of goods as they are sold to the whole sales by the producers.

3. The price of electricity in the CPI is the Industrial tariff & not the consumer tariff.

Response:

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