Q. Compared to the Consumer Price Index (CPI), Wholesale Price Index (WPI):

[A] Is a more accurate measure of overall inflation in the economy.

[B] Responds to price changes faster due to its focus on earlier stages of the supply chain.

[C] Includes the cost of services along with goods.

[D] Is directly relevant to the spending habits of individual consumers.

Answer: B
Notes:

Explanation – The WPI typically responds to price changes faster because it measures the prices of goods at the wholesale level, which is at an earlier stage in the supply chain compared to the retail prices tracked by the CPI. This makes WPI a leading indicator of price changes that might eventually affect consumer prices.

Source: The Hindu

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