How is inflation in india calculated?

Question

How is inflation in india calculated?

Answer 1

You please watch Indian news channels. Everyday they are showing the calculation.

Answer 2

pie= (P second year- P first year)/ P first year

Answer 3

In India there are arround 435 commodities based on which the inflation is calculated, and in India the inflation is calculated based on the WPI(Wholesale price index).

For example consider only 1 commodity and 1 price

Consider a price of a commodity was Rs100 in 2007 and in 2008 the price of the same commodidy is Rs150. This means that the price is increased by Rs50

Then this difference in price should be compared with the old price (in this case Rs100) to do this we will divide 50 by 100 which gives us 0.5, to get the percent of increase we should multiply by 100,

which is 0.5 * 100=50

that means the inflation of this commodity is 50%

Formula for Inflation is

((Current price - previous price) / previous price) * 100