Login

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

  • 1
View Full Answer
 A comprehensive measure used for estimation of price changes in a basket of goods and services representative of consumption expenditure in an economy is called consumer price index.
  • -1
Wholesale Price Index (WPI) represents the price of goods at a wholesale stage i.e. goods that are sold in bulk and traded between organizations instead of consumers. WPI is used as a measure of inflation in some economies.
  • 0
What are you looking for?