Some Important Index Numbers

Beyond textbook illustrations, several index numbers are computed regularly and used in policy and finance. The important ones you should know are the Consumer Price Index (CPI) or cost-of-living index, the Wholesale Price Index (WPI), the Index of Industrial Production (IIP), the Human Development Index (HDI), and the Sensex. The first three (CPI, WPI, IIP) are widely used in policy making; the secti …