The conversation between human and AI assistant.
Why does India use WPI instead of CPI to calculate inflation?
Can you explain to me why India uses WPI instead of CPI to calculate inflation?
Certainly. WPI, or the Wholesale Price Index, is used in India to measure inflation because it reflects changes in the prices of goods sold in bulk, such as at the factory or wholesale level. CPI, or the Consumer Price Index, on the other hand, measures changes in the prices of goods and services at the consumer level. WPI is considered more accurate in India because it includes a wider range of goods and services, including those that are not directly consumed by individuals. Does that answer your question?