Which is the base rate year for calculating the

Solution

• WPI and CPI (Consumer Price Index) are used to calculate the inflation rates. In India, Inflation rates are based on WPI which is released by the Ministry of Commerce and Industry.
• The CPI is a measure that assesses the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care, purchased by households.
• India experienced its highest inflation rate of 34.68 per cent in September of 1974. And the lowest rate touched -11.31 per cent in May 1976.