In context with economic indicators, consider the following statements:

The Consumer Price Index (CPI) measures changes in the price level of a basket of consumer goods and services.

Wholesale Price Index by NSO excludes changes in the prices of services, which CPI captures.

As compared to Consumer Price Index for Industrial Workers (CPI(IW)), the WPI gives less weight to food articles.

How many of the above statements are correct?

Question

Consumer Price Index (CPI): It reflects inflation by measuring the average change over time in the prices paid by consumers for a market basket of goods and services.
Wholesale Price Index by NSO excludes changes in the prices of services, which CPI captures. Incorrect: The Wholesale Price Index tracks price changes of goods sold in bulk, published by the Office of Economic Adviser, Ministry of Commerce and Industry.
As compared to the Consumer Price Index for Industrial Workers (CPI(IW)), the WPI gives less weight to food articles. Correct: WPI tracks inflation at the producer level and CPI captures changes in price levels at the consumer level. WPI does not capture changes in the prices of services, which CPI does. In WPI, more weightage is given to manufactured goods, while in CPI, more weightage is given to food items.

GKToday Admin · Accepted Answer

Only two

Consumer Price Index (CPI): It reflects inflation by measuring the average change over time in the prices paid by consumers for a market basket of goods and services.
Wholesale Price Index by NSO excludes changes in the prices of services, which CPI captures. Incorrect: The Wholesale Price Index tracks price changes of goods sold in bulk, published by the Office of Economic Adviser, Ministry of Commerce and Industry.
As compared to the Consumer Price Index for Industrial Workers (CPI(IW)), the WPI gives less weight to food articles. Correct: WPI tracks inflation at the producer level and CPI captures changes in price levels at the consumer level. WPI does not capture changes in the prices of services, which CPI does. In WPI, more weightage is given to manufactured goods, while in CPI, more weightage is given to food items.