UPSC Prelims Practice Questions — Ministry of Statistics & Programme Implementation has strengthened the measurement framework of the Consumer Price Index (CPI) through a comprehensive base revision from 2012=100 to 2024=100
Q1. In the context of the Consumer Price Index, the expression 'base year' (as in 2024=100) most precisely refers to which one of the following?
- A. The reference year whose average price level is set equal to 100, against which price changes in later periods are measured
- B. The year in which the household consumption survey supplying the weights was conducted
- C. The first year in which the index value rose above 100
- D. The calendar year in which the revised index is first published
Q2. Since MoSPI launched the all-India Consumer Price Index (Rural/Urban/Combined) in 2011, how many distinct base years has this series used, including the latest revision?
- A. Two
- B. Three
- C. Four
- D. Five
Q3. With reference to the Household Consumption Expenditure Survey (HCES) 2023-24 and its role in the CPI 2024 series, consider the following statements. Which one of them is NOT correct?
- The expenditure weights of the CPI 2024 series are derived from HCES 2023-24.
- HCES 2023-24 was conducted by the National Statistical Office under MoSPI.
- The weight-reference period of the CPI 2024 series is 2023-24.
- HCES 2023-24 was the first nationwide household consumption survey conducted after CES 2004-05.
- A. 1 only
- B. 2 and 3
- C. 4 only
- D. 1 and 4
Q4. Comparing the weight sources of the old and new CPI series, consider the following statements. Which of the statements given above is/are correct?
- The 2012=100 CPI drew its expenditure weights from the NSSO Consumer Expenditure Survey of 2011-12.
- HCES 2023-24 was the first official nationwide household consumption survey conducted after 2011-12.
- Unlike its predecessor survey, HCES 2023-24 captured no expenditure on e-commerce or online platforms.
- A. 1 only
- B. 1 and 2 only
- C. 2 and 3 only
- D. 1, 2 and 3
Q5. The Classification of Individual Consumption According to Purpose (COICOP) 2018, adopted in India's CPI 2024 series, is a statistical standard maintained by which one of the following?
- A. United Nations Statistics Division
- B. Organisation for Economic Co-operation and Development
- C. International Monetary Fund
- D. Eurostat
Q6. How many distinct Consumer Price Index series are compiled by the Labour Bureau in India?
- A. Two
- B. Three
- C. Four
- D. Five
Q7. In the family of Indian price indices, 'CPI-AL' denotes which one of the following?
- A. Consumer Price Index for Agricultural Labourers
- B. Consumer Price Index for All Labour
- C. Consumer Price Index – Aggregate Level
- D. Consumer Price Index for Allied Livelihoods
Q8. Under the Flexible Inflation Targeting framework, the RBI's CPI inflation target of 4% carries a tolerance band of how many percentage points on either side?
- A. One
- B. Two
- C. Three
- D. Four
Q9. The Expert Group on Comprehensive Updation of CPI, chaired by Prof. Rajeeva Laxman Karandikar, was constituted by which one of the following?
- A. Ministry of Statistics and Programme Implementation
- B. Reserve Bank of India
- C. Ministry of Finance
- D. Ministry of Labour and Employment
Q10. Administrative data and e-commerce/online platform price data were inducted into India's CPI for the first time under which base-year series?
- A. 2010=100
- B. 2012=100
- C. 2016=100
- D. 2024=100
Q11. The National Statistical Office (NSO) under MoSPI, the body that compiles the general CPI, was constituted in 2019 by merging how many pre-existing organisations?
- A. Two
- B. Three
- C. Four
- D. Five