Question

With reference to the Wholesale Price Index (WPI), consider the following statements: 

1. The new WPI series with base 1993 – 94 = 100 became effective from April 1998 

2. In the new WPI series, the weight for primary articles has gone down by 10 percentage points 

3. The weight for electricity has increased in the new WPI series 

Which of these statements are correct? 

(a) 1, 2 and 3 (b) 2 and 3 (c) 1 and 3 (d) 1 and 2

Answer 1

(b) The new WPI series with base 1993-94 = 100 became effective from April 2000. In the new WPI series, the weight for primary articles has gone down by 10 percentage points from 32 -22%. The weight for electricity has increased in the new WPI series from 11-14%.