Directions : India’s wholesale inflation soared to a three-decade high in…
2021
Directions : India’s wholesale inflation soared to a three-decade high in April as high commodity prices and supply-chain disruptions pushed up input costs for producers. The annual rate of inflation was 15.08% (Provisional) for the month of April 2022 (Y-o-Y) as compared to 10.74% in April 2021.
The base year of All-India WPI has been revised from 2004-05 to-
Answer: C. 2011-12 — ConceptThe Wholesale Price Index (WPI) measures the average change in wholesale prices of goods. To keep it representative of the current economy, its base…
- A.
2009-10
- B.
2010-11
- C.
2011-12
- D.
2012-13
- E.
2013-14
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Correct answer: C
Concept
The Wholesale Price Index (WPI) measures the average change in wholesale prices of goods. To keep it representative of the current economy, its base year (the reference period set to 100) is periodically revised so that the basket of items and their weights reflect present-day production and trade patterns.
Application
India's Office of the Economic Adviser revised the base year of the All-India WPI from 2004-05 to 2011-12. The 2011-12 series updated the commodity basket and weighting scheme, and it is on this series that the headline figures in the passage (15.08% provisional inflation for April 2022, against 10.74% for April 2021) were computed.
Cross-check
So the revised base year that replaced 2004-05 is 2011-12. Note a separate, newer WPI series with base year 2022-23 has since been announced for later data; it does not apply to the April 2022 figures quoted here, and 2022-23 is not among the options. For this passage, the correct base year is 2011-12.