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With reference to the Consumer Price Index (CPI), consider the following statements:
1. CPI is a metric that measures retail inflation by collecting data on the prices of goods and services that are consumed by the retail population of the country.
2. The National Statistical Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI) releases CPI.
Which of the statements given above is/are correct?
  • a)
    1 only
  • b)
    2 only
  • c)
    Both 1 and 2
  • d)
    Neither 1 nor 2
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
With reference to the Consumer Price Index (CPI), consider the followi...
Consumer Price Index (CPI)
  • CPI is a metric that measures retail inflation by collecting data on the prices of goods and services that are consumed by the retail population of the country.
  • The National Statistical Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI) releases CPI.
    • CPI is released for all-India and States/UTs separately for rural, urban and combined (national).
  • Currently, CPI is calculated using 2012 as a base year.
  • Items for the CPI basket of goods and services classified across categories.
    • Few of the categories are; food and beverages, clothing, housing, fuel and light, recreation and etc.
      • All categories are assigned weights (as shown in the diagram).
    • Currently, CPI is calculated by taking into consideration 299 items.
Hence both statements are correct.
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With reference to the Consumer Price Index (CPI), consider the following statements:1. CPI is a metric that measuresretail inflationby collecting data on the prices of goods and services that are consumed by the retail population of the country.2. The National Statistical Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI) releases CPI.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer?
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