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State PCS PYQPrelims 2021

UPPCS · Question 147

Headline inflation refers to the change in value of all goods in the basket. On which basis is headline inflation measured (in India)?

  1. Wholesale Price Index
  2. Consumer Price Index for Industrial Workers
  3. Combined Consumer Price Index
  4. Urban Consumer Price Index
Show answer & explanation

Answer: (C) Combined Consumer Price Index

Explanation

Since 2014 the RBI uses CPI-Combined (rural + urban) as the headline inflation measure.