The rate of inflation in India is measured by taking into consideration the movement of the consumer price index (CPI).

Option 1: Consumer Price Index (CPI)

The consumer price index is a measure that tracks the prices of a basket of goods and services commonly purchased by households. It reflects the changes in the cost of living for consumers. By monitoring the CPI, policymakers and economists can determine the rate of inflation, which is the increase in the overall price level of goods and services.

Option 2: Wholesale Price Index (WPI)

Although the wholesale price index is an important economic indicator, it is not generally used to measure the rate of inflation in India. The WPI measures the average price changes of goods at the wholesale level. It is more relevant for businesses and producers, rather than for consumers.

Option 3: Cost of Living Index for Agricultural Labour

The cost of living index for agricultural labour is a measure specific to the agricultural sector. It represents the changes in the cost of goods and services that are relevant to agricultural workers. While this index is relevant for estimating inflation in the agricultural sector, it is not commonly used to measure inflation in the broader economy.

Option 4: Money Supply

The money supply refers to the total amount of money circulating within