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Inflation
Inflation
Inflation
V.Energy
VII.Metals
Base Metals
Precious Metals
lll. Agriculture
Grains
Softs
Livestock
Core Inflation
Core inflation is a measure of inflation which excludes certain
items that face volatile price movements e.g. food products and
energy.
The preferred measure by the Federal Reserve of core inflation
in the United States is the core
Personal consumption expenditures price index. This is based
on chained dollars.
The concept of core inflation as aggregate price growth
excluding food and energy was introduced in a 1975 paper by
Robert J. Gordon. This is the definition of "core inflation" most
used for political purposes. Analysis by the
Federal Reserve Bank of New York indicates that this measure
is no better than a moving average of the
Consumer Price Index as a predictor of inflation.
How does India calculates Inflation?
India uses the Wholesale Price Index (WPI) to calculate and then
decide the inflation rate in the economy.
WPI is the index that is used to measure the change in the average
price level of goods traded in wholesale market.
((B - A)/A)*100
So if exactly one year ago the Wholesale Price Index was 178
and today the WPI is 185, then the calculations would look like
this:
No. of No. of
No. of items No. of items
Description quotations quotations
Existing Revised Existing Revised
1981-82 1993-94 1981-82 1993-94
Primary
93 98 519 455
Articles
Fuel, Power,
Light & 20 19 73 72
Lubricant
III. Manufactured
57.04 63.75
Products
All Commodities 100.00 100.00
How oil prices rose over the
years ?
1970: The official price of Saudi crude oil is fixed at 1.80 dollars
per barrel
1974: Prices pass 10 dollars per barrel after the first oil shock,
sparked by the October 1973 Arab-Israeli war
1980: Prices top 30 dollars for the first time and progress to 39
dollars in early 1981 at the height of the war between Iran and Iraq
Sept-Oct 1990: Prices sneak above 40 dollars per barrel amid
tension over Iraq's invasion of Kuwait
Aug 2005: Prices rise above 70 dollars when Hurricane Katrina hits
the Gulf of Mexico, damaging major offshore oil installations
Dec 28, 2007: Oil prices hit 97.79 dollars per barrel after the murder
of Pakistan's opposition leader Benazir Bhutto and following a sixth
successive weekly drop in US crude reserves