Consider the following statements regarding price indices in India: 1. The weightage of food in the CPI is higher than in the WPI. 2. The WPI does not capture changes in service prices which the CPI does. 3. The RBI now uses the WPI as its key measure of inflation. Which are correct?

A. 1 and 2 only

B. 2 only

C. 3 only

D. 1, 2 and 3

Question Details

Consider the following statements regarding price indices in India: 1. The weightage of food in the CPI is higher than in the WPI. 2. The WPI does not capture changes in service prices which the CPI does. 3. The RBI now uses the WPI as its key measure of inflation. Which are correct?

Explanation: