# Given the following data: Year CPI of Industrial Workers (1982 = 100) CPI of Urban Non-manual Employees (1984-85 = 100) CPI of Agricultural Labourers (1986-87 = 100) WPI (1993-94 = 100) 1995–96 313 257 234 121.6 1996–97 342 283 256 127.2 1997–98 366 302 264 132.8 1998–99 414 337 293 140.7 1999–00 428 352 306 145.3 2000–01 444 352 306 155.7 2001–02 463 390 309 161.3 2002–03 482 405 319 166.8 2003–04 500 420 331 175.9 Source: Economic Survey, Government of India 2004-2005 (i) Calculate the inflation rates using different index numbers.(ii) Comment on the relative values of the index numbers.(iii) Are they comparable?

(i)

a)

 Year CPI of Industrial Workers (1982 = 100) Inflation Rate (in %) 1995–96 313 1996–97 342 1997–98 366 1998–99 414 1999–00 428 2000–01 444 2001–02 463 2002–03 482 2003–04 500

b)

 Year CPI of Non-manual Employees (1984-85 =100) Inflation Rate (in %) 1995–96 257 1996–97 283 1997–98 302 1998–99 337 1999–00 352 2000–01 352 2001–02 390 2002–03 405 2003–04 420

c)

 Year CPI of Agricultural Labourers (1986-87=100) Inflation Rate (in %) 1995–96 234 1996–97 256 1997–98 264 1998–99 293 1999–00 306 2000–01 306 2001–02 309 2002–03 319 2003–04 331

d)

 Year WPI (1993-94 =100) Inflation Rate (in %) 1995–96 121.6 1996–97 127.2 1997–98 132.8 1998–99 140.7 1999–00 145.3 2000–01 155.7 2001–02 161.3 2002–03 166.8 2003–04 175.9

(ii) The inflation rate for industrial worker with the base year 1982 is the highest and WPI with the base year 1993-94 has the least.

(iii) No, the index numbers are not comparable because of the following reasons:

1. Base periods for CPI of industrial workers, urban non-manual workers, agricultural labourers and WPI are different.
2. Commodities and their weightage given to different index may vary from one index number to another.

• 1
What are you looking for?