The conversation between human and AI assistant.
What is WPI and CPI? How is it measured? What is the role of a base year?
What is the role of a base year in calculating the WPI and CPI?
The base year is used as a reference point to measure the percentage change in prices of goods and services over time. It is typically set as a year where prices are relatively stable and representative of the overall economy. The current year prices are then compared to the base year prices to calculate the change in prices over time. Does that clarify things for you?