Tuesday, July 22, 2008

how is inflation calculated in India?

In India calculation of inflation is done by assuming WPI. WPI is the whole sale price index . but other than india some countries in the west and European countries calculate the inflation in yerms of CPI. CPI is the consumer price index. in india whole sale price index comprise food commodities like fruits, sugar,vegitables, etc comprise the food basin. by all this stuffs the who sale price index is calulated by the whole sale price. developing countrie like india inflation hits the middle class and lower class citizens. the basic food items needs for survival are hiked and becomes choas for the people. currently India s inflation is about 11.93% and experts say that it may increase upto 14%. the ruling GOVT failed to control inflation and it will play the major roll in the next years loksabha election campaign by the opposition parties in India.

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