ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The most well-known indicator of inflation is the Consumer Price Index (CPI), which measures the percentage change in the price of a basket of goods and services consumed by households.

Detailed explanation-2: -In India, inflation is primarily measured by two main indices: The Wholesale Price Index (WPI) and Consumer Price Index (CPI), also known as retail inflation. The index numbers used to measure the change in the overall price of goods before they are sold at retail prices constitute the WPI.

Detailed explanation-3: -CPI tracks the rate of change in U.S. inflation over time. This key economic metric is based on prices that consumers pay for goods and services throughout the U.S. economy. The percentage change in CPI over a period of time is referred to as the inflation rate.

Detailed explanation-4: -Inflation rates in India are usually quoted as changes in the Wholesale Price Index (WPI), for all commodities. Many developing countries use changes in the consumer price index (CPI) as their central measure of inflation.

Detailed explanation-5: -The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. Indexes are available for the U.S. and various geographic areas.