Consider the following in regard to the reason for the persistence of inflation according to the Economic Survey 2012-13 : Inflation in protein foods, particularly eggs, meat and fish and in fruits and vegetables has persisted because of changes in dietary habits and supply constraints. Rise in income is also a reason for sustained food inflation. An increase in MSP while necessary to ensure remunerative returns to farmers, raised the floor prices and also contributed to the rise in input prices. Which of the statements given above are correct ? Options: A . &nbsp2 and 3 only B . &nbsp1 and 3 only C . &nbsp1 and 2 only D . &nbsp1, 2 and 3

Consider the following in regard to the reason for the persistence of inflation

Question

Consider the following in regard to the reason for the persistence of inflation according to the Economic Survey 2012-13 :

Inflation in protein foods, particularly eggs, meat and fish and in fruits and vegetables has persisted because of changes in dietary habits and supply constraints.

Rise in income is also a reason for sustained food inflation.

An increase in MSP while necessary to ensure remunerative returns to farmers, raised the floor prices and also contributed to the rise in input prices.

Which of the statements given above are correct?

Options:

A . 2 and 3 only

B . 1 and 3 only

C . 1 and 2 only

D . 1, 2 and 3

Answer: Option D
Answer: (d)
According to the economic survey, 2012-13 Inflation persisted because of changes in dietary habits and supply constraints, Rise in the income of consumers and increase in Minimum support prices which raised the floor prices and also contributed to the rise in input prices.

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