With reference to the Wholesale Price Index (WPI)-based inflation rate, consider the following statements:1. The Wholesale Price Index (WPI)-based inflation rate surged to a record high of 15.1 per cent in April 2022.2. It represents the production side and the consumption side.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 'A'. Can you explain this answer?

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With reference to the Wholesale Price Index (WPI)-based inflation rate, consider the following statements:

1. The Wholesale Price Index (WPI)-based inflation rate surged to a record high of 15.1 per cent in April 2022.

2. It represents the production side and the consumption side.

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 'A'. Can you explain this answer?

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Daily Current Affairs MCQ- August 26, 2022

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With reference to the Wholesale Price Index (WPI)-based inflation rate...

The Wholesale Price Index (WPI)-based inflation rate surged to a record high of 15.1 per cent in April, with rise in prices of vegetables, fruits, milk and fuel, government data released showed.

Causes:

The heatwave led to a spike in prices of perishables such as fruits, vegetables and milk, which, along with a spike in tea prices, pushed up primary food inflation.
The core-WPI inflation rose to a four-month high of 11.1% in April, with producers forced to pass on the input price pressures. Fuel inflation rose to 38.66 per cent, while inflation for manufactured products rose to 10.85 per cent.
Much of the inflation spike is being seen as a result of the Russia-Ukraine conflict, with the contribution in retail inflation being seen at three-fourths of the index.

Impact

WPI inflation has been in double digits for the thirteenth months in a row now.
With WPI inflation remaining in double-digits, the probability of a repo hike in the June monetary policy has risen further.

Wholesale Price Index (WPI)

Wholesale Price Index, or WPI, measures the changes in the prices of goods sold and traded in bulk by wholesale businesses to other businesses.
WPI tracks prices at the factory gate level. It thus represents the production side and not the consumption side.
The numbers are released by the Office of the Economic Advisor, Department for Promotion of Industry and Internal Trade (DPIIT) in the Ministry of Commerce and Industry.
Provisional figures of Wholesale Price Index (WPI) are released on 14th of every month (or next working day) with a time lag of two weeks of the reference month.
After 10 weeks, the index is finalized and final figures are released and then frozen thereafter.

Hence only statement 1 is correct.

Answered by Notes Wala · View profile

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With reference to the Wholesale Price Index (WPI)-based inflation rate, consider the following statements:1. The Wholesale Price Index (WPI)-based inflation rate surged to a record high of 15.1 per cent in April 2022.2. It represents the production side and the consumption side.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 'A'. Can you explain this answer?

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