Answer-Assertion (A): In India, a sharp rise in the international prices of crude oil usually leads to a mo...

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Evaluating the Assertion A  The Assertion is true . In India, WPI is more sensitive to global commodity shocks, especially crude oil. This is because WPI tracks ex-factory or mandi prices wholesale level. When global oil prices rise, the impact is immediately reflected in the bulk prices of fuel and power, which are major inputs for the manufacturing and transport sectors.       Evaluating the Reason R  The Reason is true and directly explains why the assertion holds.    Weightage Difference In the WPI basket, Fuel and Power has a weightage of approximately 13.15 . In the CPI Combined basket, the Fuel and Light category has a significantly lower weightage of roughly 6.84 .   Stage of Transaction WPI measures inflation at the producerwholesaler level first stage, whereas CPI measures it at the retail level last stage. Retail prices often lag behind wholesale prices because retailers may temporarily absorb cost increases or because government subsidiestaxes like excise duty cuts may cushion the final consumer from the full brunt of a global price hike.        Key Differences for Quick Reference

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