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Shvoong Home>Business & Economy>Accounting>Determining Price Index Summary

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Determining Price Index

Article Abstract by: rgiyer     

Original Author: R.G. Iyer

How to arrive at price Index?  What are procedures, What precatuions

need to
be taken. Why price index misleads people?


 The above questions need to be
answered.   If inflation rate is
erroneous, it fails the measure the economic situation correctly.


 Regrettably,  the index price in India is in accordance with the
actual price trend.  While the prices
of  essential commidities are high, how
the price index can come down.


 The Government must try to change the
methods for determining price index. This will help to get perfect situation.


 We neex to correct the price index.  While consumer  price index is increasing how can the price
index can come down.  This quesito needs
to ne analyzed throughly.


 Unfortunately, the value rupee is coming
down sharply.  What can be bought with
100 rupees 10 years ago can never be possible as on today. 


Published: March 22, 2009
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