| With reference to Indian economy, consider the following statements |
| 1. Three types of Consumer Price Index are used in the determination of Consumer Price Index. |
| 2. Consumer Price Index of Industrial Worker and Consumer Price Index of Rural labour has given same weight in the determination of inflation. |
| Which of the statements given above is/are correct? |
A) Only 1
B) Only 2
C) Both 1 and 2
D) neither 1 nor 2
Correct Answer: A
Solution :
Presently the consumer price indices compiled in India are CPI for Industrial workers CPI (IW), CPI for Agricultural Labourers CPI (AL) and; Rural Labourers CPI (RL) and (Urban) and CPI (Rural). Consumer Price Index for Urban Non Manual Employees was earlier computed by Central Statistical Organisation. However this index has been discontinued since April 2008.The CPI (IW) and CPI (AL & RL) compiled are occupation specific and centre specific and are compiled by Labour Bureau. This means that these index numbers measure changes in the retail price of the basket of goods and services consumed by the specific occupational groups in the specific centres. CPI (Urban) and CPI (Rural) are new indices in the group of Consumer price index and has a wider coverage of population. This index compiled by Central Statistical Organisation tries to encompass the entire population and is likely to replace all the other indices presently compiled. In addition to this, Consumer Food Price Indices (CFPI) for all India for rural, urban and combined separately are also released w.e.f May, 2014.
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