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Home » Gap b/w WPI & CPI Why...
- The CPI product categorisation is sharper-
- Food and beverages, pan, tobacco and intoxicants, clothing and footwear, housing, fuel and light and a miscellaneous category.
WHO IS MOST AFFECTED BY THE RETAIL INFLATION?
- Retail inflation is about your expenses, borrowings and investments
WHY WHOLESALE INFLATION IS A WORRY?
- Wholesale price index is the one that determines increment in your salary.
- If consumption is less (demand is low)
- Wholesale inflation remains low because the manufacturers cannot increase prices of
- Force manufacturers to announce DISCOUNTS to clear their stock.
- This means factories or manufacturers are not earning more.
- No increment to your salaries.
- May even cut down on job offers.
CONCLUSION
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