UPSC CSE 2020 · PYQ · Indian Economy Basics · medium
Consider the following statements: 1. The weightage of food in CPI is higher than that in WPI. 2. The WPI does not capture changes in the prices of services, which CPI does. 3. RBI has now adopted WPI as its key measure of inflation. Which are correct?
A.1 and 2 only✓ Correct
B.1, 2 and 3
C.3 only
D.2 only
Explanation
Statements 1 and 2 are correct. However, RBI has adopted CPI (not WPI) as its key measure of inflation since 2014, making statement 3 incorrect.
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