Vol: 6, Issue: 1 2016

Page: 43-51

Analyzing the CPI and WPI for a Given Estimation to Develop a Model Based om Multivariate Integration Approach to Apply Co-Integration and Causality Analysis in Enhancing an Efficacious Inflation Forecasting

Nishita Lamba

The project is mainly concerned with the economic analysis of a news article. I have chosen an article which is on the divergence in food inflation as shown by CPI and WPI data in the Indian economy. Before getting to that I have first given a background on CPI and WPI; their definitions, their differences, comparison etc. Also, it has been shown why India used WPI as a measure of inflation. The project ends with a conclusion of the article analysis.