WPI, CPI, Core Inflation — Prelims Questions

Consider the following statements about inflation measurement in India: 1. WPI has a higher weightage for manufactured products compared to CPI 2. Core inflation excludes food and fuel components from WPI 3. RBI uses CPI-based inflation targeting since 2016 4. Services are included in both WPI and CPI calculations Which of the statements given above are correct?

Which of the following best explains why WPI and CPI sometimes show opposite trends in India?

The Reserve Bank of India's shift from WPI to CPI for inflation targeting was primarily because:

Core inflation in India excludes which of the following components from CPI? 1. Food and beverages 2. Fuel and light 3. Housing 4. Clothing and footwear Select the correct answer:

Consider the following about base years of Indian price indices: 1. Current WPI base year is 2011-12 2. Current CPI base year is 2012 3. Base years are revised every 5 years mandatorily 4. Base year revision affects the inflation calculation methodology Which statements are correct?