Question map
Not attempted Correct Incorrect ★ Bookmarked
Loading…
Q115 (IAS/2010) Economy › Money, Banking & Inflation › Inflation measurement Answer Verified

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?

Result
Your answer: —  Â·  Correct: C
Explanation

The correct answer is Option 3 (Both 1 and 2) because both statements accurately reflect the statistical and structural framework of inflation indices in India.

  • Statement 1 is correct: Since 2012, the Office of the Economic Adviser (Ministry of Commerce and Industry) has transitioned the release of the Wholesale Price Index (WPI) from a weekly to a monthly basis. While primary articles and fuel were released weekly in the past, the comprehensive index including manufactured products is now officially compiled and released only once a month.
  • Statement 2 is correct: There is a significant difference in the weightage of food between the two indices. In the CPI (IW), the weightage for the 'Food and Beverages' group is approximately 39% (2016 base year). In contrast, the weight of 'Food Articles' in WPI is much lower at around 15% (2011-12 base year). Even if 'Manufactured Food Products' are included, the total weight remains lower than that in the CPI (IW).

Therefore, since both statements are factual, Option 3 is the right choice.

How others answered
Each bar shows the % of students who chose that option. Green bar = correct answer, blue outline = your choice.
Community Performance
Out of everyone who attempted this question.
57%
got it right
✓ Thank you! We'll review this.

SIMILAR QUESTIONS

IAS · 2020 · Q37 Relevance score: 4.45

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 ?

CDS-II · 2009 · Q86 Relevance score: 4.20

Consider the following statement about wholesale Price index (WPI) I. It captures the price movement extensively and is, therefore, taken as an indicator of inflation. II. The office of the Economic adviser (OEA) is entrusted with the function of compilation and publication of the weekly wholesale price index number in India. Which of the statements given above is/are cocrrect?

IAS · 2002 · Q59 Relevance score: 3.25

Which 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. Statements 2 and 3 are correct 3. The weight for electricity has increased in the new WPI series Which of these statements are correct ?

CDS-I · 2024 · Q1 Relevance score: 2.96

Consider the following statements regarding weightage of different articles in Wholesale Price Index (WPI) : 1. Fuel and power have higher weightage in WPI than that of primary articles. 2. Weightage of manufactured products in WPI is higher than that of fuel and power. Which of the statements given above is/are correct? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2

IAS · 2005 · Q95 Relevance score: 2.78

Consider the following statements: 1. During the year 2004, India’s foreign exchange reserves did not exceed the 125 billion U.S. dollar mark. 2. The Series of index numbers of wholesale prices introduced from April, 2000 has the year 1993-94 as base year. Which of the statements is/are correct?