the basis for calculation is not really important mr.gopal. Inflation is a monetary phenomenon that is affected by the spending in the economy. You buy more, more will be the demand, more will be the prices, that is inflation. WHolesale price index keeps changing and it doesnot really contribute to inflation. You may have bought a kilo of tomatoes for 20 bucks 5 years back, and will still buy at the same rate if the rains are good. But a TV, or a Home is much costlier today, and thus inflation is higher. it is simple logic.
