Q. Consider the following statements regarding Wholesale Price Index (WPI) and Consumer Price Index (CPI):
1.WPI is calculated by the Office of Economic Advisor, Ministry of Commerce and Industry, while CPI is compiled by the National Statistical Office (MoSPI).
2.WPI includes services, whereas CPI does not.
3.The Monetary Policy Committee (MPC) uses WPI data to control inflation.
How many of the statements given above are correct?

[A] Only one

[B] Only two

[C] All three

[D] None

Answer: A
Notes:

Explanation:

  • Statement 1 is correct: WPI is compiled by the Office of Economic Advisor, MoCI, and CPI by the NSO, MoSPI.
  • Statement 2 is incorrect: WPI does not include services; CPI does include services.
  • Statement 3 is incorrect: The MPC uses CPI data, not WPI, for inflation targeting.

Source- TOI

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