Question

list out five problems with measuring cpi ?​

Answer 1

Problems with the CPI as a measure of inflation. It measures the cost of private goods and services only. It does not include the cost of public goods and services. It is the average price of a basket of goods (about 100,000 plus items) which are most commonly used by the average consumer.

मुद्रास्फीति की माप के रूप में सीपीआई के साथ समस्याएं। यह केवल निजी वस्तुओं और सेवाओं की लागत को मापता है। इसमें सार्वजनिक वस्तुओं और सेवाओं की लागत शामिल नहीं है। यह सामान की एक टोकरी (लगभग 100,000 से अधिक वस्तुओं) की औसत कीमत है, जो औसत उपभोक्ता द्वारा सबसे अधिक उपयोग किया जाता है।

Answer 2

ANSWER

CPI and it's effect

Different CPI's are published in India

CPI is a convinient way to compute the cost of living and the relative price level across time.

It doesn't provide a completely accurate estimate of the cost of living.

CPI's doesn't reflect consumer's preference for items that increase in price.

Consumers substituting purchase of low priced items is not accounted for the CPI and by the CPI.

Since CPI uses only a fixed basket of goods and any items , the introduction of new products cannot be reflected.

Changes in quality of goods and services are not well handled.