The index that measures the average change in the prices of goods and

The index that measures the average change in the prices of goods and services consumed by urban households is called

Join Our Telegram Channel

Wholesale Price Index

Consumer Price Index

Producer Price Index

Sensex

Answer is Right!

Answer is Wrong!

This question was previously asked in

UPSC Combined Section Officer – 2019-20

Download PDF Attempt Online

The Consumer Price Index (CPI) measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. In India, CPI is calculated separately for rural, urban, and combined populations. The question specifically refers to urban households, which corresponds to CPI-Urban or CPI-Combined (which includes urban data). WPI measures prices at the wholesale level, PPI measures prices received by producers, and Sensex is a stock market index.

– CPI reflects the cost of living for typical consumers.
– It is used as a key measure of retail inflation.
– Different series of CPI are published based on the target population (urban, rural, combined).

In India, the CPI combined (CPI-C) is currently the main inflation indicator used for monetary policy formulation by the Reserve Bank of India.

More similar MCQ questions for Exam preparation:-