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1 mark

Which of the following is/are subsets of wholesale inflation?

  1. A
    Housing Inflation only
  2. B
    Food Inflation only
  3. C
    Walking Inflation only
  4. D
    Both Housing and Food Inflation

Solution & Step-by-step Explanation

The Wholesale Price Index (WPI) tracks changes in the prices of goods sold and traded in bulk by wholesale businesses. WPI components include 'Primary Articles' (which heavily tracks Food Inflation), 'Fuel and Power', and 'Manufactured Products'. Crucially, WPI does not include services; hence, 'Housing Inflation' (rent/services) is completely excluded from WPI and belongs exclusively to the Consumer Price Index (CPI). Therefore, only Food Inflation is a valid subset of wholesale inflation.

Practice this question

Try it yourself before checking the explanation above.

Which of the following is/are subsets of wholesale inflation?
A
Housing Inflation only
B
Food Inflation only
C
Walking Inflation only
D
Both Housing and Food Inflation

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EconomicsInflationWPI

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