Question

    Which of the following statements regarding inflation

    indices in India is correct? 1. The Consumer Price Index (CPI) measures changes in retail prices. 2. The Wholesale Price Index (WPI) focuses on the prices of goods at the wholesale level. 3. The base year for the CPI in India is 2012.
    A 1 only Correct Answer Incorrect Answer
    B 1 and 2 only Correct Answer Incorrect Answer
    C 1 and 3 only Correct Answer Incorrect Answer
    D 1, 2, and 3 Correct Answer Incorrect Answer

    Solution

    The CPI measures retail prices, WPI measures wholesale prices, and the base year for CPI is 2012 in India. All three statements are correct.

    Practice Next