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Group 4
   Ashish Jalan (211121)
   Tapsi Ahuja (211148)
  Varun Bagai (211159)
Vineet R Singh (211165)
Yukti Agarwal (211169)
 is a rise in the general level of prices of goods and
  services in an economy.
 Inflation results in the loss of purchasing power of
  money.
 Calculation Methods:
       1. Wholesale Price Index
       2. Consumer Price Index
       3. GDP Deflator
 It measures the rise in prices of wholesale goods
 Fixed basket of goods.
 Calculated on wholesale prices.
 Has been used in India to measure the inflation
 level
 Measures the changes in the price level of consumer
  goods and services purchased by households.
 Has a fixed basket of goods and services.
 Most commonly used measure of Inflation
 GDP deflator is a measure of the level of prices of all
  new, domestically produced, final goods and services
  in an economy.
 It helps to measure the actual growth of GDP by taking
  care of the price level changes
 GDP Deflator: (Nominal GDP/Real GDP) x 100
 CPI is a better measure of inflation.
 It measures inflation as experienced by consumers in
  their day-to-day living expenses.
 GDP deflator is a close substitute of CPI but it is
  difficult to calculate as the basket of goods and
  services keeps on changing every year.
0
                                    8
                                        10




                        6
                                                       16




                                             12




                    4
                                                  14




                2
1980-81
1981-82
1982-83
1983-84
1984-85
1985-86
1986-87
1987-88
1988-89
1989-90
1990-91
1991-92
1992-93
1993-94
1994-95
 1995-96
1996-97
1997-98
1998-99
1999-00
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
  2010-11
                        CPI
                              WPI
100




                         60
                                                               160
                                                                     180




               20
                                   80




                    40
                                                   120
                                                         140




           0
1980-81
1981-82
1982-83
1983-84
1984-85
1985-86
1986-87
1987-88
1988-89
1989-90
1990-91
1991-92
1992-93
1993-94
1994-95
1995-96
1996-97
1997-98
1998-99
1999-00
2000-01
                                                                           GDP Deflator




2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
 2010-11
                              GDP Deflator
1.       Food, Beverages and Tobacco
        Cereals and products
        Pulses and products
        Milk and milk products
        Oils and fats
        Egg, fish and meat
        Condiments and spices
        Vegetables
        Fruits
        Sugar, honey etc.
        Non-alcoholic beverages
        Prepared meals etc.
        Pan, tobacco and intoxicants
2. Fuel and light
3. Housing
4. Clothing, bedding and footwear
   Clothing and bedding
   Footwear
5. Miscellaneous
     Education
     Medical care
     Recreation
     Transport & communication
     Personal care and effects
     Household Requisites
     Others
Description      Jan     Feb     Mar     Apr     May      Jun      Jul      Aug     Sep


Food, beverage   112.7   113.4   114.9   117.2   118.6    120.3    123.2    125.1   126.1
 s & tobacco

Fuel and light   119.8   120.0   120.3   121     121.7    122.7    123.9    125.4   126.5


   Housing       112.9   113.6   114.4   115.3   116.2    117.5    118.4    119.5   120.6


  Clothing,      122.7   123.3   124.2   125.3   126.5    127.7    128.9    130.2   131.5
  bedding &
   footwear


Miscellaneous    113.4   113.7   114.1   114.6   115.7    116.7    117.1    117.8   118.9


General Index    114     114.6   115.6   117.1   118.2    119.7    121.4    122.9   124



                   Inflation calculated by taking 2010 (base year) values as 100
 The rate of inflation has been increasing for all
  categories.
 The highest increase is seen in food, beverages and
  tobacco.
 Hence, general index has increased from 14% in
  January to 24% in September.
Macro economics
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Macro economics

  • 1. Group 4 Ashish Jalan (211121) Tapsi Ahuja (211148) Varun Bagai (211159) Vineet R Singh (211165) Yukti Agarwal (211169)
  • 2. is a rise in the general level of prices of goods and services in an economy. Inflation results in the loss of purchasing power of money. Calculation Methods: 1. Wholesale Price Index 2. Consumer Price Index 3. GDP Deflator
  • 3. It measures the rise in prices of wholesale goods Fixed basket of goods. Calculated on wholesale prices. Has been used in India to measure the inflation level
  • 4. Measures the changes in the price level of consumer goods and services purchased by households. Has a fixed basket of goods and services. Most commonly used measure of Inflation
  • 5. GDP deflator is a measure of the level of prices of all new, domestically produced, final goods and services in an economy. It helps to measure the actual growth of GDP by taking care of the price level changes GDP Deflator: (Nominal GDP/Real GDP) x 100
  • 6. CPI is a better measure of inflation. It measures inflation as experienced by consumers in their day-to-day living expenses. GDP deflator is a close substitute of CPI but it is difficult to calculate as the basket of goods and services keeps on changing every year.
  • 7. 0 8 10 6 16 12 4 14 2 1980-81 1981-82 1982-83 1983-84 1984-85 1985-86 1986-87 1987-88 1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 CPI WPI
  • 8. 100 60 160 180 20 80 40 120 140 0 1980-81 1981-82 1982-83 1983-84 1984-85 1985-86 1986-87 1987-88 1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 GDP Deflator 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 GDP Deflator
  • 9. 1. Food, Beverages and Tobacco Cereals and products Pulses and products Milk and milk products Oils and fats Egg, fish and meat Condiments and spices Vegetables Fruits Sugar, honey etc. Non-alcoholic beverages Prepared meals etc. Pan, tobacco and intoxicants
  • 10. 2. Fuel and light 3. Housing 4. Clothing, bedding and footwear Clothing and bedding Footwear 5. Miscellaneous Education Medical care Recreation Transport & communication Personal care and effects Household Requisites Others
  • 11. Description Jan Feb Mar Apr May Jun Jul Aug Sep Food, beverage 112.7 113.4 114.9 117.2 118.6 120.3 123.2 125.1 126.1 s & tobacco Fuel and light 119.8 120.0 120.3 121 121.7 122.7 123.9 125.4 126.5 Housing 112.9 113.6 114.4 115.3 116.2 117.5 118.4 119.5 120.6 Clothing, 122.7 123.3 124.2 125.3 126.5 127.7 128.9 130.2 131.5 bedding & footwear Miscellaneous 113.4 113.7 114.1 114.6 115.7 116.7 117.1 117.8 118.9 General Index 114 114.6 115.6 117.1 118.2 119.7 121.4 122.9 124 Inflation calculated by taking 2010 (base year) values as 100
  • 12. The rate of inflation has been increasing for all categories. The highest increase is seen in food, beverages and tobacco. Hence, general index has increased from 14% in January to 24% in September.