WPI measures the average change in prices of goods at the wholesale level. CPI measures the average change in prices paid by consumers for a basket of consumer goods and services. Both are primary measures, but WPI has a longer history as the headline index before the shift in monetary policy focus to CPI-Combined.
The primary inflation measure is
Asked in APPSC Group II Prelims 2018 · Topic: National Income & Gross Domestic Product (Nominal vs. Real GDP and GDP Deflator)
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Answer: A. Wholesale Price Index
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