Question:
Inflation in India is measured on which of the following indexes / indicators?
Inflation in India is measured on which of the following indexes / indicators?
Show Hint
Before 2014, which index did India's government use to declare the official inflation rate?
Updated On: Jul 16, 2026
- Cost of Living Index (CLI)
- Consumer Price Index (CPI)
- Gross Domestic Product (GDP)
- Wholesale Price Index (WPI)
Show Solution
Verified By Collegedunia
The Correct Option is D
Solution and Explanation
Concept:
At the time this exam was conducted, India's headline inflation figure was officially tracked using the Wholesale Price Index (WPI), which measures the average change in prices of goods at the wholesale level, before they reach the retail consumer.
Explanation:
The Cost of Living Index is used to compare the cost of maintaining a certain standard of living across different places or times, it was not India's official inflation gauge, so option A is wrong. The Consumer Price Index tracks retail prices faced by consumers and later became India's primary inflation measure from 2014 onward, but at the time of this exam, WPI was still the number quoted as the official inflation rate, so option B does not fit the period. GDP measures the total value of goods and services produced in the economy, it is a measure of output, not of price changes, so option C is wrong. WPI, published weekly and later monthly by the Office of the Economic Adviser, was the index used to announce India's inflation rate.
Final Answer:
Inflation in India, as per the practice at the time, was measured using the Wholesale Price Index (WPI).
At the time this exam was conducted, India's headline inflation figure was officially tracked using the Wholesale Price Index (WPI), which measures the average change in prices of goods at the wholesale level, before they reach the retail consumer.
Explanation:
The Cost of Living Index is used to compare the cost of maintaining a certain standard of living across different places or times, it was not India's official inflation gauge, so option A is wrong. The Consumer Price Index tracks retail prices faced by consumers and later became India's primary inflation measure from 2014 onward, but at the time of this exam, WPI was still the number quoted as the official inflation rate, so option B does not fit the period. GDP measures the total value of goods and services produced in the economy, it is a measure of output, not of price changes, so option C is wrong. WPI, published weekly and later monthly by the Office of the Economic Adviser, was the index used to announce India's inflation rate.
Final Answer:
Inflation in India, as per the practice at the time, was measured using the Wholesale Price Index (WPI).
Was this answer helpful?
0
0
Top SNAP General Knowledge Questions
- Name the jailed Chinese pro-democracy activist who won this year's Nobel Peace Prize for his 'long and non-violent struggle for fundamental human rights in China.'
- Which government is behind the 'The Nalanda Proposal' proposing Nalanda as an ideal site for establishing a 21st century learning institution.
- Jimmy Wales and Larry Sanger are known for founding
- The year 2010 is represented in Roman Numerals as
- In which country is the seat of the United Nations International Court of Justice?
View More Questions
Top SNAP Business and Economy Questions
- Six sigma based quality improvement concepts are not applicable to .
- Maxis Communications holds a majority stake in .
- Chairperson of Lakme who was once called the Cosmetic Czarina of India
- The National Income of a country is
- Which one of the following is the correct sequence of the countries having foreign Exchange Reserve from high to low?
Top SNAP Questions
- In a retail outlet, the average revenue was Rs.10,000 per day over a 30 day period. During this period, the average revenue on weekends (total 8 days) was Rs. 20,000 per day. What was the average daily revenue on weekdays?
- Two different prime numbers X and Y, both are greater than 2, then which of the following must be true?
- It takes 6 hours for pump A, used alone, to fill a tank of water. Pump B alone takes 8 hours to fill the same tank. A, B and another pump C all together fill the tank in 2 hours. How long would pump C take, used alone, to fill the tank?
- A swimming pool can be filled by pipe A in 3 hours and by pipe B in 6 hours, each pump working on its own. At 9 am, pump A is started. At what time will the swimming pool be filled if pump B is started at 10 am?
- The sum of prime numbers that are greater than 60, but less than 70 is :
View More Questions