Question

The wholesale price index number indicates the change in general price level. Unlike the CPI, it

does not have any reference consumer category. it does not include items pertaining to services

like barber charges, repairing, etc. Wholesale price index is the most commonly accepted measure

of inflation.

On the basis of above paragraph answer the following questions:

a) Define inflation.

b) Give the formula of rate of inflation and elaborate it.

c) ………….. is the most commonly accepted measure of inflation.​

Answer 1

Answer:

refer to explanation.

Explanation:

a. inflation refers to increase in general price level over a period of time.

b current CPI - INitial CPI/Initial CPI *100

c consumer price index