Report on Calculation of Inflation in India from 1993-94 to 2009-10 and Its Analysis
Report on Calculation of Inflation in India from 1993-94 to 2009-10 and its Analysis.
Submitted By:
Heena Vartak
Mita Desai
Rohan Sardessai
Tina Choudhury
Vinay Bhasin
Vicky Khurana
What is Inflation?
Inflation is a rise in the general level of prices of goods and services in an economy over a period of time. When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation also reflects erosion in the purchasing power of money – a loss of real value in the internal medium of exchange and unit of account in the economy. A chief measure of price inflation is the inflation rate, the annualized percentage change in a general price index over time.
These Indices can be 1. Wholesale Price Index (WPI) 2. Consumer Price Index (CPI) 3. GDP Deflator
Today, most economists favor a low, steady rate of inflation.
In this Report we try to find Inflation through all these three indices. All the data used here is sourced from RBI website.
Q1. Calculate the inflation rate based on the wholesale price index, CPI (IW) and GDP deflator for the period of 1993- 1994 to 2009-2010.
The inflation rate is calculated by Whole Sale Price Index is shown as:
Wholesale Price Index Annual Average :
Year | Index (Average of Weeks) | | AC | | | | | WPI | | 1992-93 | 228.7 | | | 1993-94 | 247.8 | 8.35% | | 1994-95 | 112.6 | 12.60% | | 1995-96 | 121.6 | 7.99% | | 1996-97 | 127.2 | 4.61% | | 1997-98 | 132.8 | 4.40% | | 1998-99 | 140.7 | 5.95% | | 1999-00 | 145.3 | 3.27% | | 2000-01 | 155.7 | 7.16% | | 2001-02 | 161.3 | 3.60% | | 2002-03 | 166.8 | 3.41% | | 2003-04 | 175.9 | 5.46% | | 2004-05 | 187.3 | 6.48% | | 2005-06 | 104.5 | 4.50% | | 2006-07 | 111.4 | 6.60% | | 2007-08 | 116.6 | 4.67% | | 2008-09 | 126 | 8.06% | | 2009-10 | 130.8 | 3.81% | | 2010-11 | 143.3 | 9.56% | | 2011-12 | 156.1 | 8.93% | | | | | |
This data can be
Submitted By:
Heena Vartak
Mita Desai
Rohan Sardessai
Tina Choudhury
Vinay Bhasin
Vicky Khurana
What is Inflation?
Inflation is a rise in the general level of prices of goods and services in an economy over a period of time. When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation also reflects erosion in the purchasing power of money – a loss of real value in the internal medium of exchange and unit of account in the economy. A chief measure of price inflation is the inflation rate, the annualized percentage change in a general price index over time.
These Indices can be 1. Wholesale Price Index (WPI) 2. Consumer Price Index (CPI) 3. GDP Deflator
Today, most economists favor a low, steady rate of inflation.
In this Report we try to find Inflation through all these three indices. All the data used here is sourced from RBI website.
Q1. Calculate the inflation rate based on the wholesale price index, CPI (IW) and GDP deflator for the period of 1993- 1994 to 2009-2010.
The inflation rate is calculated by Whole Sale Price Index is shown as:
Wholesale Price Index Annual Average :
Year | Index (Average of Weeks) | | AC | | | | | WPI | | 1992-93 | 228.7 | | | 1993-94 | 247.8 | 8.35% | | 1994-95 | 112.6 | 12.60% | | 1995-96 | 121.6 | 7.99% | | 1996-97 | 127.2 | 4.61% | | 1997-98 | 132.8 | 4.40% | | 1998-99 | 140.7 | 5.95% | | 1999-00 | 145.3 | 3.27% | | 2000-01 | 155.7 | 7.16% | | 2001-02 | 161.3 | 3.60% | | 2002-03 | 166.8 | 3.41% | | 2003-04 | 175.9 | 5.46% | | 2004-05 | 187.3 | 6.48% | | 2005-06 | 104.5 | 4.50% | | 2006-07 | 111.4 | 6.60% | | 2007-08 | 116.6 | 4.67% | | 2008-09 | 126 | 8.06% | | 2009-10 | 130.8 | 3.81% | | 2010-11 | 143.3 | 9.56% | | 2011-12 | 156.1 | 8.93% | | | | | |
This data can be