JAIIB | IE AND IFS | PRICE INDEX- CASE STUDY

In the Indian economy, the Price Index plays a critical role in measuring inflation, tracking the cost of living, and guiding monetary policy. For banking professionals studying for the JAIIB exam, understanding the concept of price indexes and their role in the financial system is essential. Learning Sessions presents this article on case study on Price Index. It will examine the Wholesale Price Index (WPI) and Consumer Price Index (CPI),their calculation, and how they affect the Indian financial system through a detailed case study.

DOWNLOAD PDF PRICE INDEX – CASE STUDY

A price index measures the average change in prices over time for a basket of goods and services. Two commonly used price indices in India are:

-Wholesale Price Index (WPI): Tracks the changes in the price of goods at the wholesale level. It primarily includes goods sold in bulk between businesses.

-Consumer Price Index (CPI): Measures changes in the prices of goods and services from the consumer’s perspective. It reflects the cost of living and is used to track retail inflation.

In the context of the Indian financial system, price indices are used by the Reserve Bank of India (RBI) to set monetary policy and manage inflation. Both CPI and WPI play key roles in shaping India’s monetary policy. The RBI uses CPI inflation as the key measure for its inflation-targeting framework. The WPI serves as an important indicator of price movements in the manufacturing sector. It reflects the cost pressures faced by producers and helps policymakers understand supply-side constraints in the economy.

For the extensive preparation of candidates, get details through our YouTube videos for JAIIB IE & IFS Module wise Syllabus with explanations and tips to help candidates in their preparation journey.

You may also like these JAIIB Case Studies:

JAIIB | IE & IFS | FOREIGN BANKS

JAIIB | IE & IFS | REGIONAL RURAL BANKS

The analysis of this case study on Price Index, in India reveals the complex dynamics between wholesale and retail prices and their significant influence on economic policy. For JAIIB candidates, understanding how CPI and WPI track inflation and how the RBI uses these indices to guide monetary policy is essential. Learning Sessions provides additional information about JAIIB IE & IFS VENTURE CAPITAL  by giving examples of real life scenarios.

Learn more about this case study through our YouTube channel and PDF.

Get access to our Telegram Channel for free Pdfs of JAIIB.

You May also Find these JAIIB Posts Useful

INFLATION

FOREIGN BANK WITH 20 BRANCHES AND ABOVE

PUBLIC SECTOR

GROSS DOMESTIC PRODUCT