UPSC Prelims 2020 · GS Paper 1 · Q77
Economy
Medium · CPI versus WPI as Inflation Measures
Consider the following statements comparing the Consumer Price Index (CPI) and the Wholesale Price Index (WPI) in India:
1. Food items carry a higher weight in the CPI basket than in the WPI basket.
2. Unlike CPI, WPI does not capture the prices of services.
3. Since 2016, the Reserve Bank of India has used WPI, not CPI, as its key benchmark for monetary policy targeting.
Which of the statements given above is/are correct?