Question
Write down two points of importance of consumer price index.
Solution
Two points of the importance of consumer price index are as follows:
1. Measurement of real estate:Consumer price index number are used to measure the real value of the rupee or its purchasing power and real income etc.
2. Wage-adjustments:Consumer price index is used as the basis for the wage determination. The rates of dearness allowances are determined by the government on the basis of these indices.
