In the context of WPI inflation, which of the following statements is/are correct?

WPI inflation is always higher than consumer price index (CPI) inflation.

WPI inflation measures the average change in prices of goods at the wholesale level.

Select the correct option from the codes given below:

Question

WPI inflation is always higher than CPI inflation. Incorrect: WPI inflation does not always exceed CPI inflation; it can be lower or higher depending on various economic factors and the specific time period.
WPI inflation measures the average change in prices of goods at the wholesale level Correct: WPI inflation specifically tracks price changes at the wholesale level, reflecting the cost of goods before they reach consumers.

GKToday Admin · Accepted Answer

Only 2

WPI inflation is always higher than CPI inflation. Incorrect: WPI inflation does not always exceed CPI inflation; it can be lower or higher depending on various economic factors and the specific time period.
WPI inflation measures the average change in prices of goods at the wholesale level Correct: WPI inflation specifically tracks price changes at the wholesale level, reflecting the cost of goods before they reach consumers.

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