Comparison of Consumer and Wholesale Prices Indices in India: An Analysis of Properties and Sources of Divergence

Praggya Das and Asish Thomas George

Working Papers from eSocialSciences

Abstract: This paper provides a comparative assessment of CPI and WPI in terms of its key characteristics, particularly on the method of compilation, distributional properties and measures of underlying inflation. The paper further attempts a full reconciliation of inflation divergence between CPIs and WPI with particular emphasis on 2015-16. The analysis shows that differences in weight for similar items as well as differences in composition played a crucial role in determining the level and duration of observed divergence between the retail and wholesale prices inflation.

Keywords: Consumer Price Index; Wholesale Price Index; Inflation; Flexible Inflation Targeting; Monetary Policy; price inflation; comparative assessment; distributional properties; underlying inflation. (search for similar items in EconPapers)
Date: 2017-08
Note: Institutional Papers
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Citations: View citations in EconPapers (3)

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