The rate of inflation in India is measured generally in respect of movement of
consumer price index
wholesale price index
cost of living index for agricultural labour
money supply
Answer is Right!
Answer is Wrong!
This question was previously asked in
UPSC CAPF – 2013
– The Wholesale Price Index (WPI) measures price changes at the wholesale level. It was historically the headline inflation measure.
– The Consumer Price Index (CPI) measures price changes at the retail level for a basket of goods and services consumed by households. CPI is considered a better indicator of the cost of living for consumers.
– Since 2014, the Reserve Bank of India (RBI) has adopted CPI (Combined) as the key measure of inflation for monetary policy decisions. Therefore, CPI is now generally considered the headline rate of inflation impacting the general public and policy.
– Cost of living index for agricultural labour (C) is a very specific index, not a general measure of overall inflation.
– Money supply (D) is a factor influencing inflation but not a measure of the rate of inflation itself.