{"id":86462,"date":"2025-06-01T03:48:17","date_gmt":"2025-06-01T03:48:17","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=86462"},"modified":"2025-06-01T03:48:17","modified_gmt":"2025-06-01T03:48:17","slug":"the-wholesale-price-inflation-has-increased-in-india-during-2021-202","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/the-wholesale-price-inflation-has-increased-in-india-during-2021-202\/","title":{"rendered":"The Wholesale Price Inflation has increased in India during 2021 \u2013 202"},"content":{"rendered":"<p>The Wholesale Price Inflation has increased in India during 2021 \u2013 2022 due to which of the following factors ?<\/p>\n<ul>\n<li>1. Sharp increase in international prices of crude oil<\/li>\n<li>2. Decrease in economic activity post-Covid<\/li>\n<li>3. Disruption of global supply chain<\/li>\n<li>4. High freight cost<\/li>\n<\/ul>\n<p>Select the correct answer using the code given below :<\/p>\n<p>[amp_mcq option1=&#8221;2 and 3 only&#8221; option2=&#8221;1, 3 and 4&#8243; option3=&#8221;1 and 2 only&#8221; option4=&#8221;1 and 4 only&#8221; correct=&#8221;option2&#8243;]<\/p>\n<div class=\"psc-box-pyq-exam-year-detail\">\n<div class=\"pyq-exam\">\n<div class=\"psc-heading\">This question was previously asked in<\/div>\n<div class=\"psc-title line-ellipsis\">UPSC CDS-2 &#8211; 2023<\/div>\n<\/div>\n<div class=\"pyq-exam-psc-buttons\"><a href=\"\/pyq\/pyq-upsc-cds-2-2023.pdf\" target=\"_blank\" class=\"psc-pdf-button\" rel=\"noopener\">Download PDF<\/a><a href=\"\/pyq-upsc-cds-2-2023\" target=\"_blank\" class=\"psc-attempt-button\" rel=\"noopener\">Attempt Online<\/a><\/div>\n<\/div>\n<section id=\"pyq-correct-answer\">\nThe factors that contributed to the increase in Wholesale Price Inflation (WPI) in India during 2021-2022 are 1, 3, and 4.<br \/>\n<\/section>\n<section id=\"pyq-key-points\">\n1.  **Sharp increase in international prices of crude oil**: Correct. Global energy prices, especially crude oil, saw a significant surge in 2021-2022 due to recovering demand post-pandemic and later amplified by geopolitical tensions (like the Russia-Ukraine conflict which intensified in early 2022). Since crude oil and petroleum products have a high weight in the WPI index and affect costs across various sectors (transportation, manufacturing inputs), this was a major driver of inflation.<br \/>\n2.  **Decrease in economic activity post-Covid**: Incorrect. Economic activity in India was recovering significantly in 2021-2022 from the depths of the pandemic-induced slowdown. Increased economic activity typically contributes to demand-side inflation, though WPI is more cost-driven. A decrease in activity would likely dampen inflation.<br \/>\n3.  **Disruption of global supply chain**: Correct. The COVID-19 pandemic caused widespread disruptions in global supply chains, leading to shortages of components and finished goods. This mismatch between supply and demand pushed up input costs for producers, directly contributing to higher WPI.<br \/>\n4.  **High freight cost**: Correct. Global shipping and logistics costs increased substantially in 2021-2022 due to supply chain bottlenecks, port congestion, and increased fuel prices. Higher freight costs translate into higher landed costs for imported goods and higher transportation costs for domestic movement, adding to WPI.<br \/>\n<\/section>\n<section id=\"pyq-additional-information\">\nWPI measures inflation at the wholesale level, reflecting changes in the prices of goods traded in bulk. It is heavily influenced by input costs, including raw materials, energy, and transportation. In 2021-22, WPI inflation remained in double digits for many months, driven primarily by supply-side factors and rising global commodity prices.<br \/>\n<\/section>\n","protected":false},"excerpt":{"rendered":"<p>The Wholesale Price Inflation has increased in India during 2021 \u2013 2022 due to which of the following factors ? 1. Sharp increase in international prices of crude oil 2. Decrease in economic activity post-Covid 3. Disruption of global supply chain 4. High freight cost Select the correct answer using the code given below : &#8230; <\/p>\n<p class=\"read-more-container\"><a title=\"The Wholesale Price Inflation has increased in India during 2021 \u2013 202\" class=\"read-more button\" href=\"https:\/\/exam.pscnotes.com\/mcq\/the-wholesale-price-inflation-has-increased-in-india-during-2021-202\/#more-86462\">Detailed Solution<span class=\"screen-reader-text\">The Wholesale Price Inflation has increased in India during 2021 \u2013 202<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1088],"tags":[1105,1120,1190],"class_list":["post-86462","post","type-post","status-publish","format-standard","hentry","category-upsc-cds-2","tag-1105","tag-economic-development","tag-money-banking","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The Wholesale Price Inflation has increased in India during 2021 \u2013 202<\/title>\n<meta name=\"description\" content=\"The factors that contributed to the increase in Wholesale Price Inflation (WPI) in India during 2021-2022 are 1, 3, and 4. 1. **Sharp increase in international prices of crude oil**: Correct. Global energy prices, especially crude oil, saw a significant surge in 2021-2022 due to recovering demand post-pandemic and later amplified by geopolitical tensions (like the Russia-Ukraine conflict which intensified in early 2022). Since crude oil and petroleum products have a high weight in the WPI index and affect costs across various sectors (transportation, manufacturing inputs), this was a major driver of inflation. 2. **Decrease in economic activity post-Covid**: Incorrect. Economic activity in India was recovering significantly in 2021-2022 from the depths of the pandemic-induced slowdown. Increased economic activity typically contributes to demand-side inflation, though WPI is more cost-driven. A decrease in activity would likely dampen inflation. 3. **Disruption of global supply chain**: Correct. The COVID-19 pandemic caused widespread disruptions in global supply chains, leading to shortages of components and finished goods. This mismatch between supply and demand pushed up input costs for producers, directly contributing to higher WPI. 4. **High freight cost**: Correct. Global shipping and logistics costs increased substantially in 2021-2022 due to supply chain bottlenecks, port congestion, and increased fuel prices. Higher freight costs translate into higher landed costs for imported goods and higher transportation costs for domestic movement, adding to WPI.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/the-wholesale-price-inflation-has-increased-in-india-during-2021-202\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Wholesale Price Inflation has increased in India during 2021 \u2013 202\" \/>\n<meta property=\"og:description\" content=\"The factors that contributed to the increase in Wholesale Price Inflation (WPI) in India during 2021-2022 are 1, 3, and 4. 1. **Sharp increase in international prices of crude oil**: Correct. Global energy prices, especially crude oil, saw a significant surge in 2021-2022 due to recovering demand post-pandemic and later amplified by geopolitical tensions (like the Russia-Ukraine conflict which intensified in early 2022). Since crude oil and petroleum products have a high weight in the WPI index and affect costs across various sectors (transportation, manufacturing inputs), this was a major driver of inflation. 2. **Decrease in economic activity post-Covid**: Incorrect. Economic activity in India was recovering significantly in 2021-2022 from the depths of the pandemic-induced slowdown. Increased economic activity typically contributes to demand-side inflation, though WPI is more cost-driven. A decrease in activity would likely dampen inflation. 3. **Disruption of global supply chain**: Correct. The COVID-19 pandemic caused widespread disruptions in global supply chains, leading to shortages of components and finished goods. This mismatch between supply and demand pushed up input costs for producers, directly contributing to higher WPI. 4. **High freight cost**: Correct. Global shipping and logistics costs increased substantially in 2021-2022 due to supply chain bottlenecks, port congestion, and increased fuel prices. Higher freight costs translate into higher landed costs for imported goods and higher transportation costs for domestic movement, adding to WPI.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/the-wholesale-price-inflation-has-increased-in-india-during-2021-202\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2025-06-01T03:48:17+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"The Wholesale Price Inflation has increased in India during 2021 \u2013 202","description":"The factors that contributed to the increase in Wholesale Price Inflation (WPI) in India during 2021-2022 are 1, 3, and 4. 1. **Sharp increase in international prices of crude oil**: Correct. Global energy prices, especially crude oil, saw a significant surge in 2021-2022 due to recovering demand post-pandemic and later amplified by geopolitical tensions (like the Russia-Ukraine conflict which intensified in early 2022). Since crude oil and petroleum products have a high weight in the WPI index and affect costs across various sectors (transportation, manufacturing inputs), this was a major driver of inflation. 2. **Decrease in economic activity post-Covid**: Incorrect. Economic activity in India was recovering significantly in 2021-2022 from the depths of the pandemic-induced slowdown. Increased economic activity typically contributes to demand-side inflation, though WPI is more cost-driven. A decrease in activity would likely dampen inflation. 3. **Disruption of global supply chain**: Correct. The COVID-19 pandemic caused widespread disruptions in global supply chains, leading to shortages of components and finished goods. This mismatch between supply and demand pushed up input costs for producers, directly contributing to higher WPI. 4. **High freight cost**: Correct. Global shipping and logistics costs increased substantially in 2021-2022 due to supply chain bottlenecks, port congestion, and increased fuel prices. Higher freight costs translate into higher landed costs for imported goods and higher transportation costs for domestic movement, adding to WPI.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/the-wholesale-price-inflation-has-increased-in-india-during-2021-202\/","og_locale":"en_US","og_type":"article","og_title":"The Wholesale Price Inflation has increased in India during 2021 \u2013 202","og_description":"The factors that contributed to the increase in Wholesale Price Inflation (WPI) in India during 2021-2022 are 1, 3, and 4. 1. **Sharp increase in international prices of crude oil**: Correct. Global energy prices, especially crude oil, saw a significant surge in 2021-2022 due to recovering demand post-pandemic and later amplified by geopolitical tensions (like the Russia-Ukraine conflict which intensified in early 2022). Since crude oil and petroleum products have a high weight in the WPI index and affect costs across various sectors (transportation, manufacturing inputs), this was a major driver of inflation. 2. **Decrease in economic activity post-Covid**: Incorrect. Economic activity in India was recovering significantly in 2021-2022 from the depths of the pandemic-induced slowdown. Increased economic activity typically contributes to demand-side inflation, though WPI is more cost-driven. A decrease in activity would likely dampen inflation. 3. **Disruption of global supply chain**: Correct. The COVID-19 pandemic caused widespread disruptions in global supply chains, leading to shortages of components and finished goods. This mismatch between supply and demand pushed up input costs for producers, directly contributing to higher WPI. 4. **High freight cost**: Correct. Global shipping and logistics costs increased substantially in 2021-2022 due to supply chain bottlenecks, port congestion, and increased fuel prices. Higher freight costs translate into higher landed costs for imported goods and higher transportation costs for domestic movement, adding to WPI.","og_url":"https:\/\/exam.pscnotes.com\/mcq\/the-wholesale-price-inflation-has-increased-in-india-during-2021-202\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2025-06-01T03:48:17+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/the-wholesale-price-inflation-has-increased-in-india-during-2021-202\/","url":"https:\/\/exam.pscnotes.com\/mcq\/the-wholesale-price-inflation-has-increased-in-india-during-2021-202\/","name":"The Wholesale Price Inflation has increased in India during 2021 \u2013 202","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2025-06-01T03:48:17+00:00","dateModified":"2025-06-01T03:48:17+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"description":"The factors that contributed to the increase in Wholesale Price Inflation (WPI) in India during 2021-2022 are 1, 3, and 4. 1. **Sharp increase in international prices of crude oil**: Correct. Global energy prices, especially crude oil, saw a significant surge in 2021-2022 due to recovering demand post-pandemic and later amplified by geopolitical tensions (like the Russia-Ukraine conflict which intensified in early 2022). Since crude oil and petroleum products have a high weight in the WPI index and affect costs across various sectors (transportation, manufacturing inputs), this was a major driver of inflation. 2. **Decrease in economic activity post-Covid**: Incorrect. Economic activity in India was recovering significantly in 2021-2022 from the depths of the pandemic-induced slowdown. Increased economic activity typically contributes to demand-side inflation, though WPI is more cost-driven. A decrease in activity would likely dampen inflation. 3. **Disruption of global supply chain**: Correct. The COVID-19 pandemic caused widespread disruptions in global supply chains, leading to shortages of components and finished goods. This mismatch between supply and demand pushed up input costs for producers, directly contributing to higher WPI. 4. **High freight cost**: Correct. Global shipping and logistics costs increased substantially in 2021-2022 due to supply chain bottlenecks, port congestion, and increased fuel prices. Higher freight costs translate into higher landed costs for imported goods and higher transportation costs for domestic movement, adding to WPI.","breadcrumb":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/the-wholesale-price-inflation-has-increased-in-india-during-2021-202\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/exam.pscnotes.com\/mcq\/the-wholesale-price-inflation-has-increased-in-india-during-2021-202\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/exam.pscnotes.com\/mcq\/the-wholesale-price-inflation-has-increased-in-india-during-2021-202\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/exam.pscnotes.com\/mcq\/"},{"@type":"ListItem","position":2,"name":"UPSC CDS-2","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/upsc-cds-2\/"},{"@type":"ListItem","position":3,"name":"The Wholesale Price Inflation has increased in India during 2021 \u2013 202"}]},{"@type":"WebSite","@id":"https:\/\/exam.pscnotes.com\/mcq\/#website","url":"https:\/\/exam.pscnotes.com\/mcq\/","name":"MCQ and Quiz for Exams","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/exam.pscnotes.com\/mcq\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209","name":"rawan239","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","caption":"rawan239"},"sameAs":["https:\/\/exam.pscnotes.com"],"url":"https:\/\/exam.pscnotes.com\/mcq\/author\/rawan239\/"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/86462","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/comments?post=86462"}],"version-history":[{"count":0,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/86462\/revisions"}],"wp:attachment":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/media?parent=86462"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/categories?post=86462"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/tags?post=86462"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}