ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The Consumer Price Index (CPI) is a measure of the aggregate price level in an economy. The CPI consists of a bundle of commonly purchased goods and services. The CPI measures the changes in the purchasing power of a country’s currency, and the price level of a basket of goods and services.

Detailed explanation-2: -The Consumer Price Index (CPI) is a measure of the average change overtime in the prices paid by urban consumers for a market basket of consumer goods and services.

Detailed explanation-3: -The Consumer Price Index (CPI) consists of a family of indexes that measure price change experienced by urban consumers. Specifically, the CPI measures the average change in price over time of a market basket of consumer goods and services. The market basket includes everything from food items to automobiles to rent.

Detailed explanation-4: -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. Wholesale Price Index. 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-5: -Market basket: A selected group of consumer goods and services whose prices are tracked for calculating a consumer price index and measuring the cost of living.