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.
General Knowledge
Indian Economy
Difficulty: Easy
Choose an option
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AWholesale Price Index (WPI)
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BCPI (Rural) only
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CCPI (Urban) only
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DGDP Deflator
Answer
Correct Answer: Wholesale Price Index (WPI)
Explanation
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).