- Statement 1 is correct: CPI is the RBI's primary metric for monetary policy. - Statement 2 is incorrect: Core inflation excludes volatile components like food and fuel. - Statement 3 is correct: Supply- side factors significantly impact Indian inflation. - Statement 4 is correct: Headline inflation includes all components, including volatile ones.
With respect to inflation in the Indian context, consider the following statements: 1. Retail inflation, measured by the Consumer Price Index (CPI), is the primary metric used by the Reserve Bank of India (RBI) for monetary policy formulation. 2. Core inflation includes volatile components like food and fuel prices, providing a more stable measure of underlying inflationary pressures. 3. Supply-side factors, such as monsoons affecting agricultural output and global crude oil prices, play a significant role in India's inflation dynamics. 4. Headline inflation refers to the total inflation in an economy, including volatile components such as food and energy prices. Which of the above statements are correct?
Asked in opsc 2025 2025 · Topic: Money & Banking (Inflation: Types, Causes, Effects, and Monetary Policy Responses)
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