whole price index ; cunsumer price index. it is used to measure inflation

whole price index ; cunsumer price index. it is used to measure inflation

 

now cpi is used to measure inflation. because in cpi. service sector is included while in wpi service sector is not included while measuring inflation

 

These are the statistical tool which is use to measure price fluctuation over a time period..on basis of these inflation rate is decided...earlier wpi was used to measure inflation but now CPI is used .

 

CPI is chosen over wpi by raghuram sir because inflation at ground level was high due to fuel and food prices and these have higher weightage in CPI compared to Wpi