Which of the following goods are included to estimate food inflation i

Which of the following goods are included to estimate food inflation in India?

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1. Wheat
2. Paddy
3. Tobacco
4. Sugar

Select the correct answer using the code given below:

1, 2 and 3

2, 3 and 4

1, 3 and 4

1, 2 and 4

Answer is Right!

Answer is Wrong!

This question was previously asked in

UPSC CAPF – 2020

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Food inflation in India is typically estimated using the Consumer Price Index (CPI) sub-group called ‘Food and Beverages’. This group includes various food items. Let’s examine the given options:
1. Wheat: A staple food grain, definitely included.
2. Paddy: The raw form of rice, a staple food grain, definitely included.
3. Tobacco: A non-food item (comes under ‘Pan, Tobacco and Intoxicants’ in CPI), not included in food inflation estimation.
4. Sugar: A processed food item (comes under ‘Sugar and Confectionery’), definitely included.
Therefore, items 1, 2, and 4 are included in estimating food inflation, while item 3 (Tobacco) is not.

Food inflation metrics like CPI Food and Beverages track price changes for items meant for consumption as food. Non-food items like tobacco are excluded.

The CPI Food and Beverages group covers a wide range of items including cereals and products, meat and fish, egg, edible oils and fat, fruits, vegetables, pulses and products, sugar and confectionery, spices, non-alcoholic beverages, and prepared meals.

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