Measuring change in trade and transport margins using WPI and CPI

The difference between the prices of goods in retail and wholesale markets, which is known as Trade and Transport Margin, is affected by the profit motive or price determining power of retailers. The paper attempts to measure the change in Trade & Transport Margins and Trade Margins of consumable items using Wholesale Price Indices and Consumer Price Indices to examine whether slight increase in transportation cost or price rise in wholesale market leads to exponential increase in retail prices.