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.