The base year to calculate CPI-UNME isa)1980-81b)2001-02c)2003-04d)198...
The base year to calculate CPI-UNME is 1984-85. 180 items are included in the index.
View all questions of this test
The base year to calculate CPI-UNME isa)1980-81b)2001-02c)2003-04d)198...
The base year to calculate CPI-UNME is 1984-85.
Introduction:
The Consumer Price Index for Urban Non-Manual Employees (CPI-UNME) is a measure of inflation in India. It is used to track changes in the prices of goods and services consumed by urban non-manual employees. The base year is the reference point against which all other years are compared to calculate the CPI-UNME.
Explanation:
The base year for the calculation of CPI-UNME is determined by the National Statistical Office (NSO) in India. It is chosen based on certain criteria such as representativeness, availability of data, and stability of the economy. The base year should ideally be a year of relative price stability and should reflect the typical consumption pattern of the target group, which in this case is urban non-manual employees.
The base year for CPI-UNME was initially set as 1984-85. The choice of this base year was influenced by the fact that it was a period of relative price stability and represented the consumption pattern of urban non-manual employees at that time. The weights assigned to different items in the index were based on the expenditure patterns of urban non-manual employees during the base year.
Significance of Base Year:
The base year is used as a reference point to calculate the CPI-UNME for subsequent years. The prices of goods and services in the base year are assigned a value of 100. The price changes in subsequent years are calculated by comparing the prices of goods and services in those years with the prices in the base year.
The CPI-UNME is calculated using a fixed basket of goods and services. The quantities of goods and services in the basket are fixed based on the consumption patterns of urban non-manual employees during the base year. The prices of these items are collected periodically, and the index is calculated by comparing the current prices with the prices in the base year.
Conclusion:
In conclusion, the base year to calculate the CPI-UNME is 1984-85. The choice of this base year was based on the criteria of representativeness, availability of data, and stability of the economy. The base year serves as a reference point to calculate the CPI-UNME for subsequent years and is used to track changes in the prices of goods and services consumed by urban non-manual employees.
To make sure you are not studying endlessly, EduRev has designed UPSC study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in UPSC.