Given the following data
Source Economic Survey, Government of India 2004-2005
(i) Calculate the inflation rates using different index number.
(ii) Comment on the relative values of the index number.
(Hi) Are they comparable?
(ii) The inflation rate calculated using CPI industrial worker with the base year 1982 is the highest and inflation rate calculated using WPI with the base year 1993-94 is the least.
(iii) No, the index number are not comparable because of the following reasons
(a) Base periods for CPI of industrial workers, urban non-manual workers, agricultural labourers and WPI are different.
(b) Commodities and their weightage in different index number may he different.