Question
With reference to India, consider the following statements
Which of the statements given above is/are correct?
- WPI is available on a monthly basis only.
- As compare to Consumer Price Index for the Industrial Worker (CPIIW), the WPI gives less weightage to food articles.
Which of the statements given above is/are correct?
Answer: Option A
Answer: (a)
This rise in wholesale food prices was not captured by WPI as the weightage for food articles is just 14.3% compared to 65% for manufactured products in this index.
On the other hand, the weightage for food is 57% in CPI items which captures the impact of food prices better.
Further, wholesale prices do not take into account the substantial margins at the retail level, which tend to rise when there are shortages.
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Answer: (a)
This rise in wholesale food prices was not captured by WPI as the weightage for food articles is just 14.3% compared to 65% for manufactured products in this index.
On the other hand, the weightage for food is 57% in CPI items which captures the impact of food prices better.
Further, wholesale prices do not take into account the substantial margins at the retail level, which tend to rise when there are shortages.
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