The index that measures the average change in the prices of goods and services consumed by urban households is called
[amp_mcq option1=”Wholesale Price Index” option2=”Consumer Price Index” option3=”Producer Price Index” option4=”Sensex” correct=”option2″]
This question was previously asked in
UPSC Combined Section Officer – 2019-20
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).