Which of these is true of the Wholesale Price Index but not of the Consumer Price Index?

It covers rural areas onlyCorrect answerYour answerIt excludes services entirelyCorrect answerYour answerIt is published once a yearCorrect answerYour answerIt is compiled by the Reserve BankCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer B

Correct answer: B

The WPI tracks goods traded in bulk between businesses, and carries no services at all.
The CPI measures what a household actually spends on, so rent, school fees, transport and medical care are all in it.
That is why services inflation shows up in one index and is invisible in the other.

Worth noting

Both are published monthly. The CPI is released as rural, urban and combined series.

Concept: What the Wholesale Price Index leaves out
Typical timeTypical: 40 s
Your timeYours: —

The rule this testsMoney, inflation and price indices

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Ten questions from Indian Economy & Institutions, at your own pace.

Which of these is true of the Wholesale Price Index but not of the Consumer Price Index?

Explanation