WPI's warning
I remember I had bought a Pepsi ball for INR 5 and a stumper ball for INR 10 before 15 years ago. Can the same stumper ball be bought with INR 10 now? The current price of stumper ball is somewhere close to INR 30. So, I can't buy a stumper ball for ten rupees now, which I did a decade earlier. Purchasing power of money has been reduced from the previous decade. Inflation can be defined as a rise in the general level of prices of goods and services in an economy over a period of time. Inflation rate can be defined as an annualized percentage change in a general price index. Inflation is usually measured by CPI or WPI. Image Courtesy: Times of India The Consumer Price Index (CPI) comprises retail prices that consumers pay for a basket of goods, whereas the Wholesale Price Index comprises wholesale prices that wholesale buyers pay for a basket of goods. Below is the composition of WPI and below is the composition of CPI Image courtesy:...