{"id":91756,"date":"2025-06-01T11:05:04","date_gmt":"2025-06-01T11:05:04","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=91756"},"modified":"2025-06-01T11:05:04","modified_gmt":"2025-06-01T11:05:04","slug":"consider-the-following-statements-the-weightage-of-food-in-consumer","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/consider-the-following-statements-the-weightage-of-food-in-consumer\/","title":{"rendered":"Consider the following statements:\n  The weightage of food in Consumer"},"content":{"rendered":"<p>Consider the following statements:<\/p>\n<ul>\n<li>The weightage of food in Consumer Price Index (CPI) is higher than that in Wholesale Price Index (WPI).<\/li>\n<li>The WPI does not capture changes in the prices of services, which CPI does.<\/li>\n<li>Reserve Bank of India has now adopted WPI as its key measure of inflation and to decide on changing the key policy rates.<\/li>\n<\/ul>\n<p>Which of the statements given above is\/are correct ?<\/p>\n<p>[amp_mcq option1=&#8221;1 and 2 only&#8221; option2=&#8221;2 only&#8221; option3=&#8221;3 only&#8221; option4=&#8221;1, 2 and 3&#8243; correct=&#8221;option1&#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 IAS &#8211; 2020<\/div>\n<\/div>\n<div class=\"pyq-exam-psc-buttons\"><a href=\"\/pyq\/pyq-upsc-ias-2020.pdf\" target=\"_blank\" class=\"psc-pdf-button\" rel=\"noopener\">Download PDF<\/a><a href=\"\/pyq-upsc-ias-2020\" target=\"_blank\" class=\"psc-attempt-button\" rel=\"noopener\">Attempt Online<\/a><\/div>\n<\/div>\n<section id=\"pyq-correct-answer\">\nThe question asks which of the given statements regarding CPI, WPI, and RBI&#8217;s inflation measure are correct.<br \/>\n<\/section>\n<section id=\"pyq-key-points\">\n&#8211; Statement 1: The weightage of food in Consumer Price Index (CPI) is indeed significantly higher than its weight in the Wholesale Price Index (WPI) in India. CPI basket reflects typical household consumption patterns where food items constitute a large share of expenditure, while WPI tracks prices at the wholesale level which includes manufactured products, fuel, power, and primary articles (including food).<br \/>\n&#8211; Statement 2: WPI primarily measures price changes of goods traded in wholesale markets. CPI measures price changes of a basket of goods and services consumed by households. Therefore, WPI does not capture changes in the prices of services, while CPI does.<br \/>\n&#8211; Statement 3: The Reserve Bank of India (RBI) officially adopted the Consumer Price Index (Combined) (CPI-C) as its key measure for inflation targeting and monetary policy decisions following the recommendations of the Urjit Patel Committee in 2014. Prior to this, WPI was more commonly used, but now CPI is the primary target variable for inflation.<br \/>\n<\/section>\n<section id=\"pyq-additional-information\">\nCPI reflects the impact of price changes on the final consumer, making it a more relevant measure for monitoring the welfare impact of inflation and for informing monetary policy aimed at price stability for consumers. WPI captures price movements at an earlier stage of the economic transaction.<br \/>\n<\/section>\n","protected":false},"excerpt":{"rendered":"<p>Consider the following statements: The weightage of food in Consumer Price Index (CPI) is higher than that in Wholesale Price Index (WPI). The WPI does not capture changes in the prices of services, which CPI does. Reserve Bank of India has now adopted WPI as its key measure of inflation and to decide on changing &#8230; <\/p>\n<p class=\"read-more-container\"><a title=\"Consider the following statements:\n  The weightage of food in Consumer\" class=\"read-more button\" href=\"https:\/\/exam.pscnotes.com\/mcq\/consider-the-following-statements-the-weightage-of-food-in-consumer\/#more-91756\">Detailed Solution<span class=\"screen-reader-text\">Consider the following statements:<br \/>\n  The weightage of food in Consumer<\/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":[1092],"tags":[1288,1120,1190],"class_list":["post-91756","post","type-post","status-publish","format-standard","hentry","category-upsc-ias","tag-1288","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>Consider the following statements:  The weightage of food in Consumer<\/title>\n<meta name=\"description\" content=\"The question asks which of the given statements regarding CPI, WPI, and RBI&#039;s inflation measure are correct. - Statement 1: The weightage of food in Consumer Price Index (CPI) is indeed significantly higher than its weight in the Wholesale Price Index (WPI) in India. CPI basket reflects typical household consumption patterns where food items constitute a large share of expenditure, while WPI tracks prices at the wholesale level which includes manufactured products, fuel, power, and primary articles (including food). - Statement 2: WPI primarily measures price changes of goods traded in wholesale markets. CPI measures price changes of a basket of goods and services consumed by households. Therefore, WPI does not capture changes in the prices of services, while CPI does. - Statement 3: The Reserve Bank of India (RBI) officially adopted the Consumer Price Index (Combined) (CPI-C) as its key measure for inflation targeting and monetary policy decisions following the recommendations of the Urjit Patel Committee in 2014. Prior to this, WPI was more commonly used, but now CPI is the primary target variable for inflation.\" \/>\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\/consider-the-following-statements-the-weightage-of-food-in-consumer\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Consider the following statements:  The weightage of food in Consumer\" \/>\n<meta property=\"og:description\" content=\"The question asks which of the given statements regarding CPI, WPI, and RBI&#039;s inflation measure are correct. - Statement 1: The weightage of food in Consumer Price Index (CPI) is indeed significantly higher than its weight in the Wholesale Price Index (WPI) in India. CPI basket reflects typical household consumption patterns where food items constitute a large share of expenditure, while WPI tracks prices at the wholesale level which includes manufactured products, fuel, power, and primary articles (including food). - Statement 2: WPI primarily measures price changes of goods traded in wholesale markets. CPI measures price changes of a basket of goods and services consumed by households. Therefore, WPI does not capture changes in the prices of services, while CPI does. - Statement 3: The Reserve Bank of India (RBI) officially adopted the Consumer Price Index (Combined) (CPI-C) as its key measure for inflation targeting and monetary policy decisions following the recommendations of the Urjit Patel Committee in 2014. Prior to this, WPI was more commonly used, but now CPI is the primary target variable for inflation.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/consider-the-following-statements-the-weightage-of-food-in-consumer\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2025-06-01T11:05:04+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":"Consider the following statements:  The weightage of food in Consumer","description":"The question asks which of the given statements regarding CPI, WPI, and RBI's inflation measure are correct. - Statement 1: The weightage of food in Consumer Price Index (CPI) is indeed significantly higher than its weight in the Wholesale Price Index (WPI) in India. CPI basket reflects typical household consumption patterns where food items constitute a large share of expenditure, while WPI tracks prices at the wholesale level which includes manufactured products, fuel, power, and primary articles (including food). - Statement 2: WPI primarily measures price changes of goods traded in wholesale markets. CPI measures price changes of a basket of goods and services consumed by households. Therefore, WPI does not capture changes in the prices of services, while CPI does. - Statement 3: The Reserve Bank of India (RBI) officially adopted the Consumer Price Index (Combined) (CPI-C) as its key measure for inflation targeting and monetary policy decisions following the recommendations of the Urjit Patel Committee in 2014. Prior to this, WPI was more commonly used, but now CPI is the primary target variable for inflation.","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\/consider-the-following-statements-the-weightage-of-food-in-consumer\/","og_locale":"en_US","og_type":"article","og_title":"Consider the following statements:  The weightage of food in Consumer","og_description":"The question asks which of the given statements regarding CPI, WPI, and RBI's inflation measure are correct. - Statement 1: The weightage of food in Consumer Price Index (CPI) is indeed significantly higher than its weight in the Wholesale Price Index (WPI) in India. CPI basket reflects typical household consumption patterns where food items constitute a large share of expenditure, while WPI tracks prices at the wholesale level which includes manufactured products, fuel, power, and primary articles (including food). - Statement 2: WPI primarily measures price changes of goods traded in wholesale markets. CPI measures price changes of a basket of goods and services consumed by households. Therefore, WPI does not capture changes in the prices of services, while CPI does. - Statement 3: The Reserve Bank of India (RBI) officially adopted the Consumer Price Index (Combined) (CPI-C) as its key measure for inflation targeting and monetary policy decisions following the recommendations of the Urjit Patel Committee in 2014. Prior to this, WPI was more commonly used, but now CPI is the primary target variable for inflation.","og_url":"https:\/\/exam.pscnotes.com\/mcq\/consider-the-following-statements-the-weightage-of-food-in-consumer\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2025-06-01T11:05:04+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\/consider-the-following-statements-the-weightage-of-food-in-consumer\/","url":"https:\/\/exam.pscnotes.com\/mcq\/consider-the-following-statements-the-weightage-of-food-in-consumer\/","name":"Consider the following statements: The weightage of food in Consumer","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2025-06-01T11:05:04+00:00","dateModified":"2025-06-01T11:05:04+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"description":"The question asks which of the given statements regarding CPI, WPI, and RBI's inflation measure are correct. - Statement 1: The weightage of food in Consumer Price Index (CPI) is indeed significantly higher than its weight in the Wholesale Price Index (WPI) in India. CPI basket reflects typical household consumption patterns where food items constitute a large share of expenditure, while WPI tracks prices at the wholesale level which includes manufactured products, fuel, power, and primary articles (including food). - Statement 2: WPI primarily measures price changes of goods traded in wholesale markets. CPI measures price changes of a basket of goods and services consumed by households. Therefore, WPI does not capture changes in the prices of services, while CPI does. - Statement 3: The Reserve Bank of India (RBI) officially adopted the Consumer Price Index (Combined) (CPI-C) as its key measure for inflation targeting and monetary policy decisions following the recommendations of the Urjit Patel Committee in 2014. Prior to this, WPI was more commonly used, but now CPI is the primary target variable for inflation.","breadcrumb":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/consider-the-following-statements-the-weightage-of-food-in-consumer\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/exam.pscnotes.com\/mcq\/consider-the-following-statements-the-weightage-of-food-in-consumer\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/exam.pscnotes.com\/mcq\/consider-the-following-statements-the-weightage-of-food-in-consumer\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/exam.pscnotes.com\/mcq\/"},{"@type":"ListItem","position":2,"name":"UPSC IAS","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/upsc-ias\/"},{"@type":"ListItem","position":3,"name":"Consider the following statements: The weightage of food in Consumer"}]},{"@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\/91756","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=91756"}],"version-history":[{"count":0,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/91756\/revisions"}],"wp:attachment":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/media?parent=91756"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/categories?post=91756"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/tags?post=91756"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}