Repercussions of falling inflation in India

INFLATION MEANS rising prices of goods and services in general over a period of time. It can also be described as a decline in the real value of money, ie a loss of purchasing power of money. Inflation rate is normally measured as a percentage change in price index over time. There are two prices indices that are normally used: Consumer Price Index (CPI) and Wholesale Price Index (WPI). A Consumer Price Index (CPI) is a measure of the average price of consumer goods and services purchased by households. It is a price index determined by measuring the price of a standard group of goods meant to represent the typical market basket of a typical urban consumer.

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