Question

In India, inflation measured by the -
1. Wholesale Price Index Number
2. Consumer Price Index for urban non-manual workers
3. Consumer Price Index for agricultural labourers
4. National Income Deflator

Answer 1

Correct Answer - Option 1 : Wholesale Price Index Number

The correct answer is Wholesale Price Index Number.

• In India, inflation measured by the - Wholesale Price Index Number.

• The Wholesale Price Index represents the price of a basket of wholesale goods.
  • WPI focuses on the price of goods that are traded between corporations.
  • It does not concentrate on goods purchased by the consumers.
  • The main objective of WPI is monitoring price drifts that reflect demand and supply in manufacturing, construction and industry.
  • WPI helps in assessing macroeconomic as well as microeconomic conditions of an economy.
  • Inflation rates are based on WPI which is released by the Office of Economic Advisor under the Ministry of Commerce and Industry.
  • 2011-2012 is the base year for the Wholesale Price Index (WPI).
• There are four series, viz the CPI UNME (Urban Non-Manual Employee), CPI AL (Agricultural Labourer), CPI RL (Rural Labourer), and CPI IW (Industrial Worker).
• While the CPI UNME series is published by the Central Statistical Organisation, the others are published by the Department of Labour.