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? |ForumIAS

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?

[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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