How is CPI Used: Meaning, Working and Process

How Is CPI Used?

Which Agencies Uses CPI to Take Economic Decisions?

What Is the Step-by-Step Process to Calculate the Consumer Price Index (CPI)?

An Example Showing the Computation of Consumer Price Index (CPI)

What Are the Uses of Consumer Price Index (CPI)?

FAQs About How CPI Is Used

Who is responsible for computing CPI in India?

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The Ministry of Statistics and Programme Implementation (MoSPI) and Price Statistics Division (PSD) of the National Statistical Office (NSO) are involved together to calculate and determine the Consumer Price Index (CPI) for rural, urban, and various sectors in India.

What are the limitations of Consumer Price Index (CPI)?

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The following are some demerits of Consumer Price Index (CPI):

  • CPI does not determine the price changes in rural, urban, or remote areas.
  • It cannot compute variations across two different areas.
  • CPI does consider the differences in spending habits between individual households.

What are the different types of CPI?

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The Consumer Price Index (CPI) has been classified into four different types, which comprise CPI for Industrial Workers (CPI-IW), CPI for Rural Labourers (CPI-RL), CPI for Urban Non-Manual Employees (CPI-UNME), and CPI for Agricultural Labourers (CPI-AL).

What is the present-day CPI in India?

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According to a current report, the Consumer Price Index CPI increased to 6.52% in January 2023.

Disclaimer

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  • This is an informative article provided on 'as is' basis for awareness purpose only and not intended as a professional advice. The content of the article is derived from various open sources across the Internet. Digit Life Insurance is not promoting or recommending any aspect in the article or its correctness. Please verify the information and your requirement before taking any decisions.
  • All the figures reflected in the article are for illustrative purposes. The premium for Coverage that one buys depends on various factors including customer requirements, eligibility, age, demography, insurance provider, product, coverage amount, term and other factors
  • Tax Benefits, if applicable depend on the Tax Regime opted by the individual and the applicable tax provision. Please consult your Tax consultant before making any decision.

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