From an individual perspective, which index between Consumer Price Index(CPI) and Wholesale Price Index (WPI) would affect your standard of living more? Give reason.

CPI because it reflects the changes in retail prices whereas WPI reflects changes in wholesale prices

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CPI because it includes services whereas WPI doesn’t

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Both A and B

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None of these

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Solution

The correct option is C
Both A and B

Consumer Price Index will affect us more because it reflects the changes in average prices of goods and services at the retail level – a measure lot more important from the consumer’s perspective- whereas WPI reflects the changes in average prices of goods in the wholesale market. Also, WPI doesn’t have the component of services which CPI has and thus CPI is more holistic.

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1, 2 and 3 only
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Q. Q. In which of the following aspects, the Wholesale Price Index (WPI) and Consumer Price Index (CPI) differ from each other?Select the correct answer using the codes given below:

2, 3 and 4 only
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A consumer price index measures changes in

(i) retail prices

(ii) wholesale prices

(iii) producers prices

Q. Which of the following is/are correctly matched?
Index Base Year
1. Index of Industrial Production 2011-12
2. Consumer Price Index 2010 to 2012
3. Wholesale Price Index 2011-12
Select the correct answer using the codes given:

The consumer price index in India is continuously rising over the year 2012 and 2013. Which value is compromised with the rising wholesale price index?

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