Price indices used for measuring inflation in India: Which index is (traditionally) used to measure headline inflation at the national level? Consider common exam framing that contrasts WPI and CPI. Choose the correct index.

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Solve this multiple-choice question and choose the correct option.

Accepted Answer

Given data The question follows the traditional exam framing for India’s headline inflation measure. Concept / ApproachHistorically, India’s headline inflation frequently referred to the WPI. (In recent policy discussions CPI-Combined is widely used, but the classic exam answer remains WPI unless otherwise specified.) Final AnswerWholesale Price Index (WPI).

Price indices used for measuring inflation in India: Which index is (traditionally) used to measure headline inflation at the national level? Consider common exam framing that contrasts WPI and CPI. Choose the correct index.

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