Given the following data: Year – InterviewSolution

Given the following data: Year CPI of Industrial Workers (1982 = 100) CPI of Urban Non-manual Employees (1984-85 = 100) CPI of Agricultural Labourers (1986-87 = 100) WPI (1993-94 = 100) 1995–96 313 257 234 121.6 1996–97 342 283 256 127.2 1997–98 366 302 264 132.8 1998–99 414 337 293 140.7 1999–00 428 352 306 145.3 2000–01 444 352 306 155.7 2001–02 463 390 309 161.3 2002–03 482 405 319 166.8 2003–04 500 420 331 175.9 Source: Economic Survey, Government of India 2004-2005 (i) Calculate the inflation rates using different index numbers.(ii) Comment on the relative values of the index numbers.(iii) Are they comparable?

Answer»

Given the following data:

Year	CPI of Industrial Workers (1982 = 100)	CPI of Urban Non-manual Employees (1984-85 = 100)	CPI of Agricultural Labourers (1986-87 = 100)	WPI (1993-94 = 100)
1995–96	313	257	234	121.6
1996–97	342	283	256	127.2
1997–98	366	302	264	132.8
1998–99	414	337	293	140.7
1999–00	428	352	306	145.3
2000–01	444	352	306	155.7
2001–02	463	390	309	161.3
2002–03	482	405	319	166.8
2003–04	500	420	331	175.9

Source: Economic Survey, Government of India 2004-2005

(i) Calculate the inflation rates using different index numbers.

(ii) Comment on the relative values of the index numbers.

(iii) Are they comparable?