Question
With reference to the wholesale price index (WPI),
consider the following statements: 1. WPI is an important index necessary for calculating inflation in a country. 2. Ministry of Finance is responsible for compiling WPI and releasing it. 3. WPI focuses on the price of goods that are traded between corporations. Which of the statements given above is/are correct?Solution
· India’s wholesale price index (WPI)-based inflation rate rose to the highest level in the current 2011-12 series at 15.08 per cent in April on the back of hardening commodity and vegetable prices. · With this, the WPI-based inflation has been in double-digits for 13 consecutive months. · Core inflation, which excludes food and fuel inflation, rose marginally to a four-month high of 11.1 per cent. · Fuel inflation climbed to 38.66 per cent, while inflation for manufactured products increased to 10.85 per cent. · Ministry of Commerce & Industry is responsible for compiling WPI and releasing it. · Wholesale Price Index (WPI) is an important index necessary for calculating inflation in a country.
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