Indian Economy › Inflation & Price Indices – UPSC Prelims PYQs

Consider the following statements :

1. The weightage of food in Consumer Price Index (CPI) is higher than that in Wholesale Price Index (WPI).
2. The WPI does not capture changes in the prices of services, which CPI does.
3. Reserve Bank of India has now adopted WPI as its key measure of inflation and to decide on changing the key policy rates.

Which of the statements given above is/are correct ?

Which of the following brings out the ‘Consumer Price Index Number for Industrial Workers’?

With reference to inflation in India, which of the following statements is correct?

Consider the following statements :

1. Inflation benefits the debtors.
2. Inflation benefits the bond-holders.

Which of the statements given above is/are correct?

A rise in general level of prices may be caused by

1. An increase in the money supply
2. A decrease in the aggregate level of output
3. An increase in the effective demand

Select the correct answer using the codes given below.

India has experienced persistent and high food inflation in the recent past. What could be the reasons?

1. Due to a gradual switchover to the cultivation of commercial crops, the area under the cultivation of food grains has steadily decreased in the last five years by about 30%.
2. As a consequence of increasing incomes, the consumption patterns of the people have undergone a significant change.
3. The food supply chain has structural constraints.

Which of the statements given above are correct?

A rapid increase in the rate of inflation is sometimes attributed to the "base effect". What is "base effect" ?

Economic growth is usually coupled with

Which one of the following statements is an appropriate description of deflation ?

With reference to India, consider the following statements:

1. The Wholesale Price Index (WPI) in India is available on a monthly basis only.
2. As compared to Consumer Price Index for Industrial Workers (CPI(IW)), the WPI gives less weight to food articles.

Which of the statements given above is/are correct?

With reference to the Wholesale Price Index (WPI), consider the following statements:

1. The new WPI series with base 1993-94 = 100 became effective from April 1998.
2. In the new WPI series, became effective from 1 April 2000.
3. The weight for electricity has increased in the new WPI series.

Which of these statements are correct?

The new series of Wholesale Price Index (WPI) released by the Government of India is with reference to the base prices of

The current price index (base 1960) is nearly 330. This means that

In India, inflation is measured by the