Types of Inflation
Types of Inflation
Types of Inflation
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Major Price Indices<br />
1. Consumer Price Index (CPI)<br />
• Measures price changes <strong>of</strong> 364 commonly<br />
used consumer items. (base year 1982-84)<br />
2. Producer Price Index (PPI)<br />
• Measures changes in prices <strong>of</strong> consumer<br />
goods before they reach the retail level.<br />
Also known as wholesale price index<br />
• includes approx. 3,000 commodities<br />
3. Implicit GDP Price Deflator<br />
• Measures price changes in GDP<br />
• = (nominal GDP/ real GDP) 100
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