In India, inflation is measured by the
- AWholesale Price Index NumberCorrect
- BConsumers Price Index for urban non-manual workers
- CConsumers Price Index for agricultural workers
- DNational Income deflation
Explanation
The Wholesale Price Index or WPI is the primary measure used by the government and the Reserve Bank of India to track inflation at the economy wide level. It measures the changes in the price of goods sold and traded in bulk by wholesale businesses to other businesses. While Consumer Price Indices exist for specific groups like agricultural workers or urban manual laborers, they only reflect the cost of living for those particular segments. WPI provides a broader indicator of price movements in the production and manufacturing stages, making it the standard headline inflation measure for general economic policy and analysis in the context of this traditional question.
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