WPI, CPI, Core Inflation — Prelims Strategy

Prelims Strategy

Focus on memorizing exact weightage figures: WPI manufactured goods 64.23%, CPI food & beverages 45.86%, core inflation excludes 52.7% of CPI basket. Remember base years precisely: WPI 2011-12, CPI 2012.

Understand the 2016 policy shift timeline and Urjit Patel Committee role. Practice elimination techniques by identifying which index includes/excludes services - this is a common trap. Memorize data sources: NSO for CPI, Office of Economic Adviser for WPI.

Focus on recent divergence patterns and current inflation targeting framework details. Common traps include confusing which components are excluded from core inflation and mixing up the reasons for WPI-CPI divergence.