Question
Consider the following statements regarding CPI and WPI:
Select the correct answer using the code given below:
- CPI includes indirect taxes
- WPI includes indirect taxes
Select the correct answer using the code given below:
Answer: Option C
Answer: (c)
CPI includes indirect taxes. So, when government increases the GST rate, it is captured in the CPI data.
But in the new series of WPI (2011-12), the government has excluded indirect taxes while measuring WPI. This is in consonance with international practices and will make the new WPI conceptually closer to the Producer Price Index (PPI).
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Answer: (c)
CPI includes indirect taxes. So, when government increases the GST rate, it is captured in the CPI data.
But in the new series of WPI (2011-12), the government has excluded indirect taxes while measuring WPI. This is in consonance with international practices and will make the new WPI conceptually closer to the Producer Price Index (PPI).
Was this answer helpful ?
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