Q. With reference to the Consumer Price Index (CPI) in India, consider the following statements:
1.The base revision exercise of the CPI is undertaken by the Ministry of Finance.
2.Food and Beverages constitute the highest weight in the CPI basket.
Which of the statements given above is/are correct?

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: B
Notes:

Explanation:

  • Statement 1 is incorrect – The Ministry of Statistics and Programme Implementation (MoSPI), not the Ministry of Finance, undertakes the base revision of CPI.
  • Statement 2 is correct – Food and Beverages have the highest weight in the CPI basket, accounting for about 45.86%.

Source- PIB

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