inflation in india
Macro economics
Project on
INFLATION
-SUBMITTED BY
CHIKKAM.SAI ALEKHYA
DANNY VARGHESE
DEEPAK SAKTHIVEL
DEEPTHI MOHAN
GIRISH GANGADHARAN
TABLE OF CONTENTS
Inflation
Measures of inflation
Measures of inflation in India
CPI Types
WPI
Calculation of WPI
New series of CPI
CPI Urban/Rural
How Inflation is related with GDP?
Relationship between broad money supply and WPI/CPI
Announcement of hike in DA for government employees cause inflation?
Impact of elections on inflation
Hypothesis testing for elections and inflation
References
INFLATION
An increase in the average level of prices of goods and services.
Primarily, two types of price indices used are – Wholesale Price Index (WPI) and Consumer Price Index (CPI). Inflation measured through wholesale price index is called wholesale price inflation or headline inflation and inflation measured through consumer price index is called consumer price inflation.
CONSUMER PRICE INDEX (CPI): It is more relevant to the consumer, since it measures changes in retail prices. The Consumer Price Index represents the basket of essential commodities purchased by the average consumer – food, fuel, lighting, housing, clothing, articles etc. Inflation measured by using CPI is called consumer price inflation. There are three measures of CPI, which track the cost of living of three different categories of consumers—
Industrial workers (IW) Agricultural laborers (AL) Rural laborers (RL).
Each category has its own basket of commodities that represent the consumption pattern of the respective consumer groups. Not only does the basket of commodities differ, but also the weights assigned to the same commodity may be different under different CPI series.
The chart below gives us a brief idea about the basket of commodities considered I weighing WPI and CPI(IW).
Here the graph shows the CPI series of rural labor, agricultural labor and industrial worker. Here
Project on
INFLATION
-SUBMITTED BY
CHIKKAM.SAI ALEKHYA
DANNY VARGHESE
DEEPAK SAKTHIVEL
DEEPTHI MOHAN
GIRISH GANGADHARAN
TABLE OF CONTENTS
Inflation
Measures of inflation
Measures of inflation in India
CPI Types
WPI
Calculation of WPI
New series of CPI
CPI Urban/Rural
How Inflation is related with GDP?
Relationship between broad money supply and WPI/CPI
Announcement of hike in DA for government employees cause inflation?
Impact of elections on inflation
Hypothesis testing for elections and inflation
References
INFLATION
An increase in the average level of prices of goods and services.
Primarily, two types of price indices used are – Wholesale Price Index (WPI) and Consumer Price Index (CPI). Inflation measured through wholesale price index is called wholesale price inflation or headline inflation and inflation measured through consumer price index is called consumer price inflation.
CONSUMER PRICE INDEX (CPI): It is more relevant to the consumer, since it measures changes in retail prices. The Consumer Price Index represents the basket of essential commodities purchased by the average consumer – food, fuel, lighting, housing, clothing, articles etc. Inflation measured by using CPI is called consumer price inflation. There are three measures of CPI, which track the cost of living of three different categories of consumers—
Industrial workers (IW) Agricultural laborers (AL) Rural laborers (RL).
Each category has its own basket of commodities that represent the consumption pattern of the respective consumer groups. Not only does the basket of commodities differ, but also the weights assigned to the same commodity may be different under different CPI series.
The chart below gives us a brief idea about the basket of commodities considered I weighing WPI and CPI(IW).
Here the graph shows the CPI series of rural labor, agricultural labor and industrial worker. Here
References: http://www.tradingeconomics.com/belgium/housing-index http://labourbureau.nic.in/indexes.htm http://www.eaindustry.nic.in/default.html http://www.idfc.com/