Question
Which index is used by RBI for measurement of
inflation?Solution
In 2014 RBI adopted the new Consumer Price Index (CPI) (combined) as the key measure of inflation. Earlier, RBI had given more weightage to Wholesale Price Index (WPI) than CPI as the key measure of inflation for all policy purposes. This has been done as per the recommendations of Urjit R. Patel Committee report.
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