Question
Which of the following statements is/are incorrect about
the “Wholesale Price Index (WPI)”? I. WPI does not capture changes in the prices of services. II. In WPI, more weightage is given to manufactured goods, while in CPI (Consumer Price Index), more weightage is given to food items.Solution
Explanation: The Ministry of Commerce and Industry reveals that the Wholesale Price Index (WPI) in India fell to a near three-year low with a deflation rate of (-) 0.92% in April, marking its entry into negative territory after 33 months. WPI doesn’t capture changes in the prices of services. In WPI, more weightage is given to manufactured goods, while in CPI (Consumer Price Index), more weightage is given to food items.
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