Write down the features of consumer price index number.

Solution

Features of CPI. Following are main features of CPI.

1. In India three CPI’s are constructed:

(i) CPI for industrial workers (ii) CPI for urban non-manual employees and (iii) CPI for agricultural labourers.

2. The base year for CPI for industrial workers, CPI for urban non-manual employees and CPI for agricultural labourers are 1982,1984-85 and 1986-87, respectively.

3. They are routinely calculated every month to analyse the impact of changes in the retail price on the cost of living of these three broad categories of consumers.

4. The CPI for industrial workers and agricultural labourers are published by Labour Bureau Shimla.

5. The Central Statistical Organization publishes the CPI for urban non-manual employees.

6. The items shown in the table are taken while calculating CPI. for industrial workers. From the table we come to know that food has the largest weight.

CPI for industrial workers

Major Crops	Weight in percentage
Food	57.00
Pan, Supari, Tobacco etc.	3.15
Fuel and light	6.28
Housing	8.67
Clothing, bedding and footwear	8.54
Music group	16.36
General	100.00

Some More Questions From Index Numbers Chapter

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Index Numbers

Write down the features of consumer price index number.

Some More Questions From Index Numbers Chapter

In general, inflation is calculated by using:

The item having the highest weight in consumer’s price index for industrial workers is:

consumer price index measures changes in:

The wholesale price index.

D.A. paid to the workers is based on:

Why do we need an index number?

Why is it essential to have different CPIs for different categories of consumers?

What does a consumer price index for industrial workers measure?

What is the difference between a price index and a quantity index?

Is the change in any price reflected in price index number?

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