Question
Write the four uses of Consumer Price Index Numbers.

Answer

The four uses of Consumer Price Index Numbers are:
  1. It is helpful in wage negotiation.
  2. It is helpful in the formulation of general economic policy, as it is considered to be appropriate indicator of general inflation, which shows the most accurate impact of price rise on the cost of living of common people.
  3. It is used by business units and government to regulate the dearness allowance to the employees in order to compensate them for the rising cost of living, on account of price rise.
  4. It is helpful in analysing markets for particular kind of goods and services.

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