With reference to the Consumer Price Index (CPI) consider the following statements:1.CPI basket includes outdated items which have minimal significance in the overall CPI calculation.2.India has a significant weightage of food in the CPI compared to other developed countries.Select the correct statements using the codes given below:

Q. With reference to the Consumer Price Index (CPI) consider the following statements:
1.CPI basket includes outdated items which have minimal significance in the overall CPI calculation.
2.India has a significant weightage of food in the CPI compared to other developed countries.
Select the correct statements using the codes given below:

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: C

Notes:

Explanation –

Statements 1 and 2 are correct. CPI basket includes outdated items which have minimal significance in the overall CPI calculation, e.g., torches, radios, tape recorders, CDs, etc. India still has a significant weightage of food in the CPI compared to other developed countries.

Source: ForumIAS

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