Q. Consider the following: Wholesale Price Index (WPI) Consumer Price Index (CPI) National Income Deflator Which among the above can be used to measure Inflation?
Answer: All 1, 2 & 3
Notes: Many measures are available for measurement of inflation like Wholesale Price Index (WPI) (on a point-to-point basis and on average basis), Consumer Price Index (CPI) or national income deflator. The availability of these indices also differs from weekly to quarterly. The basic premise for linking with inflation is to ensure a positive real rate of interest to the investors.

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