what is whilesale price index ?write its drawback.
Answers
Explanation:
A wholesale price index (WPI) is an index that measures and tracks the changes in the price of goods in the stages before the retail level.
WPI considers the impact of only a sample of goods that are supposed to represent the entire population of goods. Always an inherent risk of business exists. Since it is representative of the population, the inflation calculated as a whole using the weighted average may not be accurate.
Answer:
A wholesale price index (WPI) measures and tracks the changes in the price of goods before they reach consumers: goods that are sold in bulk and traded between entities or businesses (rather than consumers).
Wholesale price indexes (WPIs) are one indicator of a country's level of inflation.
In 1978, the U.S. began using a more detailed producer price index (PPI) in place of wholesales price indexes (WPIs).
Explanation: