Question

Given the following data-

Year	CPI of industrial workers (1982 = 100)	CPI of agricultural labourers (1986-87 = 100)	WPI (1993-94 = 100)
1995-96	313	234	121.6
1996-97	342	256	127.2
1997-98	366	264	132.8
1998-99	414	293	140.7
1999-00	428	306	145.3
2000-01	444	306	155.7
2001-02	463	309	161.3
2002-03	482	319	166.8
2003-04	500	331	175.9

 

Comment on the relative values of the index numbers.

Answer 1

(a)

Year	CPI of Industrial Workers (1982 = 100)	Inflation Rate (in %) =  `(A_2 - A_1)/A_1 xx 100`
1995-96	313	`(313 - 100)/100 xx 100 = 213`
1996-97	342	`(342 - 100)/100 xx 100 = 242`
1997-98	366	`(366 - 100)/100 xx 100 = 266`
1998-99	414	`(414 - 100)/100 xx 100 = 314`
1999-00	428	`(428 - 100)/100 xx 100 = 328`
2000-01	444	`(444 - 100)/100 xx 100 = 344`
2001-02	463	`(463 - 100)/100 xx 100 = 363`
2002-03	482	`(482 - 100)/100 xx 100 = 382`
2003-04	500	`(500 - 100)/100 xx 100 = 400`

(b)

Year	CPI of Agricultural Labourers (1986-87 = 100)	Inflation Rate (in %) = `(A_2 - A_1)/A_1 xx 100`
1995-96	234	`(234 - 100)/100 xx 100 = 134`
1996-97	256	`(256 - 100)/100 xx 100 = 156`
1997-98	264	`(264 - 100)/100 xx 100 = 164`
1998-99	293	`(293 - 100)/100 xx 100 = 193`
1999-00	306	`(306 - 100)/100 xx 100 = 206`
2000-01	306	`(306 - 100)/100 xx 100 = 206`
2001-02	309	`(309 - 100)/100 xx 100 = 209`
2002-03	319	`(319 - 100)/100 xx 100 = 219`
2003-04	331	`(331 - 100)/100 xx 100 = 231`

(c)

Year	WPI (1993-94 = 100)	Inflation Rate (in %)  = `(A_2 - A_1)/A_1 xx 100`
1995-96	121.6	`(121.6 - 100)/100 xx 100 = 21.6`
1996-97	127.2	`(127.2 - 100)/100 xx 100 = 27.2`
1997-98	132.8	`(132.8 - 100)/100 xx 100 = 32.8`
1998-99	140.7	`(140.7 - 100)/100 xx 100 = 40.7`
1999-00	145.3	`(145.3 - 100)/100 xx 100 = 45.3`
2000-01	155.7	`(155.7 - 100)/100 xx 100 = 55.7`
2001-02	161.3	`(161.3 - 100)/100 xx 100 = 61.3`
2002-03	166.8	`(166.8 - 100)/100 xx 100 = 66.8`
2003-04	175.9	`(175.9 - 100)/100 xx 100 = 75.9`

The inflation rate for the industrial workers with the base year 1982 is the highest and WPI with the base year 1993-94 has the least.