There are several ways to measure inflation. On the basis of population coverage, the inflation indices are developed to understand the levels of inflation for certain sets of population such as consumers, producers, retailers, wholesalers, etc. Such indices are called
On the basis of items, the inflation indices are developed to understand the levels of inflation for certain sets / baskets of items. Since the prices of some items are more volatile than others like food and fuel, it might give conflicting signals to policymakers as the overall ....
