The average wage of a rail-road worker per day was Rs119 in 2000 and Rs 245 in 2005. The Consumer Price Index for these year was 95.5 and 123.5, respectively. Show that the money wage increased by about 59% in 2005 as compared to 2000.
We first calculate a Consumer Price Index with 2000 as base year by dividing given consumer price index by 95.5 and expressing the result as percentage.
Although the wages are more than doubled, the money wages increased by only 59.20 %. 2 7.