Q. Consider the following statements regarding “Consumer Price Index (CPI)”:
1.It is used to measure inflation.
2.It is compiled and published by the department of economic affairs.
Which of the statements given above is/are not correct?
Red Book
Red Book

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: B
Notes:

Explanation: Consumer Price Index (CPI) – CPI is a comprehensive measure used for estimation of price changes in a basket of goods and services representative of consumption expenditure in an economy.

  • Inflation is measured using CPI. The percentage change in this index over a period of time gives the amount of inflation over that specific period.
  • The National Statistical Office (NSO) under Ministry of Statistics and Programme Implementation (MoSPI) releases Consumer Price Index (CPI) in India with the base year 2012.

Source: FORUMIAS

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