UPSC Prelims Practice Questions — PRESS RELEASE OF CONSUMER PRICE INDEX ON BASE 2024=100 FOR FEBRUARY, 2026
Q1. Under the new CPI series on base 2024=100, the item basket is organised in accordance with COICOP-2018. How many Divisions are there at the first (highest) level of this hierarchy?
Q2. In the context of the CPI 2024=100 series, the term COICOP-2018 is best defined as:
- A. A UN Statistics Division standard that classifies household final consumption expenditure by its purpose
- B. A World Bank index measuring purchasing power parity across consumption baskets
- C. An ILO framework for classifying occupations of urban industrial workers
- D. An RBI scheme for classifying core versus non-core components of inflation
Q3. Which agency compiles and releases the all-India Consumer Price Index (Combined) on base 2024=100?
- A. National Statistical Office (NSO), Ministry of Statistics & Programme Implementation
- B. Labour Bureau, Ministry of Labour & Employment
- C. Office of the Economic Adviser, Department for Promotion of Industry and Internal Trade
- D. Department of Economic Affairs, Ministry of Finance
Q4. In the 2024 series, the number of weighted items in the all-India CPI basket compiled by the NSO increased from 299 (in the 2012 series) to:
Q5. Under the flexible inflation targeting framework, the CPI inflation target that anchors monetary policy is determined by which authority?
- A. The Central Government, in consultation with the RBI
- B. The Monetary Policy Committee of the RBI
- C. The RBI Governor acting alone
- D. The NITI Aayog, in consultation with MoSPI
Q6. With reference to India's flexible inflation targeting framework, consider the following statements:
1. The CPI inflation target is notified by the Central Government once every five years.
2. The target is 4% CPI inflation with a tolerance band of plus/minus 2 percentage points.
3. A statutory basis for the framework was provided by amending the RBI Act, 1934, in 2016.
4. The inflation target is determined by the Monetary Policy Committee.
Which of the statements given above is/are correct?
- The CPI inflation target is notified by the Central Government once every five years.
- The target is 4% CPI inflation with a tolerance band of plus/minus 2 percentage points.
- A statutory basis for the framework was provided by amending the RBI Act, 1934, in 2016.
- The inflation target is determined by the Monetary Policy Committee.
- A. 1, 2 and 3
- B. 1 and 4
- C. 2, 3 and 4
- D. 1, 2 and 4
Q7. The February 2026 headline CPI figure of 3.21% is assessed against an inflation target that derives its statutory authority from which provision of the RBI Act, 1934?
- A. Section 45ZA
- B. Section 45ZB
- C. Section 45ZN
- D. Section 45IA
Q8. With reference to the CPI press release on base 2024=100 for February 2026, consider the following statements:
1. Headline CPI (Combined) inflation was 3.21% (provisional).
2. Consumer Food Price Index (CFPI, Combined) inflation was 3.47%.
3. Rural inflation was lower than urban inflation during the month.
4. Headline inflation rose by about 47 basis points over the final January 2026 figure of 2.74%.
Which of the statements given above is/are correct?
- Headline CPI (Combined) inflation was 3.21% (provisional).
- Consumer Food Price Index (CFPI, Combined) inflation was 3.47%.
- Rural inflation was lower than urban inflation during the month.
- Headline inflation rose by about 47 basis points over the final January 2026 figure of 2.74%.
- A. 1 and 3
- B. 2 and 4
- C. 1, 2 and 4
- D. 1, 3 and 4
Q9. Counting from the launch of the all-India CPI(Combined) series, how many distinct base years has it used to date, including the new 2024=100 base?
Q10. With reference to COICOP-2018 as adopted in the CPI 2024 series, consider the following statements:
1. It is a classification developed by the UN Statistics Division.
2. It classifies household final consumption expenditure by purpose.
3. Under it, the Indian CPI is organised into 12 divisions at the first level.
4. It replaced the earlier Indian practice of classifying items into 12 broad groups.
Which of the statements given above is/are correct?
- It is a classification developed by the UN Statistics Division.
- It classifies household final consumption expenditure by purpose.
- Under it, the Indian CPI is organised into 12 divisions at the first level.
- It replaced the earlier Indian practice of classifying items into 12 broad groups.
- A. 1, 2 and 3
- B. 2 and 4
- C. 1, 3 and 4
- D. 3 and 4 only
Q11. With reference to the role of the Household Consumption Expenditure Survey (HCES) in the CPI 2024 series, consider the following statements:
1. HCES 2023-24 data were used to derive the consumption weights for the new series.
2. The share of Food & Beverages declined relative to the previous series but remained the largest component of the basket.
3. The HCES is conducted by the NSO under MoSPI.
4. Under the 2024 series, Food & Beverages is no longer the single largest group in the CPI basket.
Which of the statements given above is/are correct?
- HCES 2023-24 data were used to derive the consumption weights for the new series.
- The share of Food & Beverages declined relative to the previous series but remained the largest component of the basket.
- The HCES is conducted by the NSO under MoSPI.
- Under the 2024 series, Food & Beverages is no longer the single largest group in the CPI basket.
- A. 1, 2 and 3
- B. 1 and 4
- C. 2, 3 and 4
- D. 1, 3 and 4
Q12. As reported alongside the CPI press releases, the Consumer Food Price Index (CFPI) is best described as:
- A. A sub-index of retail price inflation for the food and beverages component of the CPI, released for Rural, Urban and Combined
- B. A measure of wholesale prices of food articles compiled in the Wholesale Price Index
- C. A core inflation measure obtained by excluding food and fuel from the headline CPI
- D. An index of minimum support prices and procurement prices of food grains