Question
EconomyMoney, RBI and InflationInflation, Price Indices and Price StabilityMedium (editorial estimate)
Question details
- Type:
- Statement based
- Skill:
- Concept understanding
- Tags:
- CPI WPI and inflation targeting · Inflation, Price Indices and Price Stability
- Related topics:
- Monetary Policy and Liquidity Management
Classification and difficulty are editorial labels. Explanations are awaiting review.
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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?
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Question 67 · Inflation, Price Indices and Price Stability · Economy · UPSC Prelims 2020 (GS)