Inflation is measured in India on the basis of which ‘Index’?

Solution (By Examveda Team)

In India, inflation is primarily measured using the Wholesale Price Index (WPI).

WPI tracks the price changes of goods at the wholesale level, before they reach the consumer.

The index is calculated by considering the weighted average price of a basket of goods, including manufactured products, primary articles, and fuel & power.

Although the Consumer Price Index (CPI) is also used for certain economic assessments, WPI remains the key indicator for measuring inflation in India at the macroeconomic level.