GK
INDIAN ECONOMY
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Wholesale Price Index
|
|
|
GDP deflator
|
|
|
Productive Price Index
|
|
|
Commodity Price Index
|
Detailed explanation-1: -Generally, WPI and CPI (Consumer Price Index) are used to calculate the inflation rates. In India, Inflation rates are based on WPI which is released by the Ministry of Commerce and Industry.
Detailed explanation-2: -In India, RBI uses CPI(combined) released by CSO for inflation purpose. An index used by the Reserve Bank of India till 2014 to make its monetary policy, WPI, as the name suggests, measures the prices at the wholesale level.
Detailed explanation-3: -In India, inflation is primarily measured by two main indices: The Wholesale Price Index (WPI) and Consumer Price Index (CPI), also known as retail inflation. The index numbers used to measure the change in the overall price of goods before they are sold at retail prices constitute the WPI.
Detailed explanation-4: -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.