In order to construct Wholesale Price Index, Commodities are classified into how many categories?Explain.
Dear student,
To measure WPI, commodities are classified into following categories:
1) Primary goods: It covers both food and non food items. These goods are directly obtained from natural resources.
2) Fuels: it includes fuel and related products like coal, petroleum, electricity.
3) Manufactured or Industrial good: it includes machinery, equipment, chemicals, fertilizers, etc.
Regards
To measure WPI, commodities are classified into following categories:
1) Primary goods: It covers both food and non food items. These goods are directly obtained from natural resources.
2) Fuels: it includes fuel and related products like coal, petroleum, electricity.
3) Manufactured or Industrial good: it includes machinery, equipment, chemicals, fertilizers, etc.
Regards