Inflation

1. Expansionary policies
2. Fiscal stimulus
3. Inflation-indexing wages
4. Higher purchasing power
5. Rising interest rates

1. The weightage of food in Consumer Price Index (CPI) is higher than that in Wholesale Price Index (WPI).
2. The WPI does not capture changes in the prices of services, which CPI does.
3. Reserve Bank of India has now adopted WPI as its key measure of inflation and to decide on changing the key policy rates.

1. an increase in the money supply
2. a decrease in the aggregate level of output
3. an increase in the effective demand

1. Inflation benefits the debtors.
2. Inflation benefits the bondholders.

With reference to India, consider the following statements:

1. The Wholesale Price Index (WPI) in India is available on a monthly basis only.
2. As compared to Consumer Price Index for Industrial Workers (CPIIW), the WPI gives less weight to food articles.

Which of the statements given above is/are correct?

With reference to the Wholesale Price Index (WPI), consider the following statements:

1. The new WPI series with base 1993–94 = 100 became effective from April 1998
2. In the new WPI series, the weight for primary articles has gone down by 10 percentage points
3. The weight for electricity has increased in the new WPI series

Which of these statements are correct?