There are two measures of inflation in India namely the Consumer Price Index (CPI) and the Wholesale Price Index (WPI). The Consumer Price Index estimates the cost at the buyer level and the Wholesale Price Index estimates costs at the wholesale level. The number and types of items that are included for the CPI and WPI basket vary and so do the weights given to these items.
Reasons for such divergence
Has this happened before?
Impact on Policymaking
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