How are prices measured in India?
Prices are measured at wholesale and retail levels.Most advanced economies have a producer price Index(PPI) and a set of retail price Indices.
PPI
It is a measure of change in the Selling Price over time for producers.It is usually the first commercial transaction in goods and services produced.PPI is the measure of what the producer gets and not what the buyer pays, which includes taxes.
WPI
WPI(Wholesale Price Index) measures prices at the wholesale level and includes certain taxes and costs.
NEED FOR PPI
Together with the retail price indices, it gives an idea of margins on different products and incidence of taxes. It indicates the cost pressures in an economy.
Prices are measured at wholesale and retail levels.Most advanced economies have a producer price Index(PPI) and a set of retail price Indices.
PPI
It is a measure of change in the Selling Price over time for producers.It is usually the first commercial transaction in goods and services produced.PPI is the measure of what the producer gets and not what the buyer pays, which includes taxes.
WPI
WPI(Wholesale Price Index) measures prices at the wholesale level and includes certain taxes and costs.
NEED FOR PPI
Together with the retail price indices, it gives an idea of margins on different products and incidence of taxes. It indicates the cost pressures in an economy.
No comments:
Post a Comment