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Consider the following statements: a. The average CPI inflation declined to 4.9% in 2015 – 16 from 5.9% in 2014 – 15. b. The average inflation based on the Wholesale Price Index declined to (-) 2.5% in 2015 – 16 from 2.0% in 2014 – 15. c. The average inflation was 2.9% during April – December 2016. Which of the statement/s given above is/are correct?

Consider the following statements: a. The average CPI inflation declined to 4.9% in 2015 – 16 from 5.9% in 2014 – 15. b. The average inflation based on the Wholesale Price Index declined to (-) 2.5% in 2015 – 16 from 2.0% in 2014 – 15. c. The average inflation was 2.9% during April – December 2016. Which of the statement/s given above is/are correct? Correct Answer a and b

The Correct answer is a and b.

  • The inflation rate of the average consumer price index (CPI) fell from 5.9 per cent in 2014-15 to 4.9 per cent in 2015-16.
  • In 2016-17, core inflation dependent on the CPI stayed stable near 5 per cent.
  • A consumer price index tracks changes in the price level of a weighted average consumer goods and services basket which households buy. 
  • The wholesale price index (WPI)-based average inflation needed in 2015-16 to(-) 2.5 per cent from 2.0 per cent in 2014-15.
  • The deteriorating trend reversed the effects of rising global product prices, as well as the detrimental effect of the base during that financial year.
  • In December 2016, WPI inflation stood at 3.4 per cent and during April-December 2016, the average inflation was 2.9 per cent.

Related Questions

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