BANKING AFFAIRS

Detailed explanation-1: -Inflation rates in India are usually quoted as changes in the Wholesale Price Index (WPI), for all commodities. Many developing countries use changes in the consumer price index (CPI) as their central measure of inflation. In India, CPI (combined) is declared as the new standard for measuring inflation (April 2014).

Detailed explanation-2: -Consumer Price Index or CPI is used to measure inflation in India because it is more holistic than other indices..

Detailed explanation-3: -In India inflation is measured by the Wholesale Price Index (WPI).

Detailed explanation-4: -The correct answer is the Consumer price index. Inflation refers to the rise in the average price level of goods and services leading to a decline in the value of money within a particular economy. The wholesale price index and the consumer price index are the two main indicators of inflation in India.

Detailed explanation-5: -The most well-known indicator of inflation is the Consumer Price Index (CPI), which measures the percentage change in the price of a basket of goods and services consumed by households.