Q. Which of the following pair (s) is/are correctly matched?
1. Index:Base Year
1. Wholesale price index:2014-15
2. Consumer price index:2004-05
3. Gross Domestic Product:2011-12
Select the correct answer using the code given below:

[A] 1 only

[B] 3 only

[C] 1 and 3 only

[D] 2 and 3 only

Answer: B

Consumer Price Index or CPI as it is commonly called is an index measuring retail inflation in the economy by collecting the change in prices of most common goods and services used by consumers. Base Year for CPI is 2012. 

  • Wholesale Price Index, or WPI, measures the changes in the prices of goods sold and traded in bulk by wholesale businesses to other businesses.  
  • With an aim to align the index with the base year of other important economic indicators such as GDP and IIP, the base year was updated to 2011-12 from 2004-05 for the new series of Wholesale Price Index (WPI), effective from April 2017. 
  • The present base year for gross domestic product is 2011-12. 

Source: TMH Ramesh Singh