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Headline inflation in India is currently based on
Question

Headline inflation in India is currently based on

A.

Combined Consumer Price Index

B.

Urban Consumer Price Index

C.

Rural Consumer Price Index

D.

Wholesale Price Index

Correct option is A

Headline inflation in India is measured using the Combined Consumer Price Index (CPI), which reflects the average change over time in the prices of a basket of goods and services consumed by households.
The Combined CPI is a weighted average of both:
• Urban Consumer Price Index (CPI-Urban) focuses solely on urban areas.
• Rural Consumer Price Index (CPI-Rural) focuses solely on rural areas.
Making it the basis for calculating headline inflation in India.

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