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Q.

Which of the following is used to measure inflation in India?

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a

 Wholesale Price Index number

b

National Income Deflation

c

 Consumers Price Index for urban non-manual workers

d

 Consumers Price Index for agricultural workers

answer is B.

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Detailed Solution

  • Consumer Price Index and Wholesale Price Index (WPI) are two widely used and significant indicators of inflation (CPI).
  • The CPI tracks the rise in prices of needs purchased by the average consumer in the retail market, whereas the WPI tracks the rise in costs of a specified basket of commodities that are popular in the wholesale market.
  • The WPI, which is calculated weekly, serves as India's primary inflation gauge.
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