Friday, May 29, 2009

Inflation in India - is WPI a faithful measure?

The media has been interpreting the Wholesale Price Index (WPI) numbers as heralding that inflation has been halted. But other indicators show a picture of inflation entirely different from that shown by the WPI. Far from reaching zero or negative levels, inflation as measured by the consumer price indices has been averaging around 10 per cent for industrial and agricultural workers over the last 6 months. Read article here

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