UPSC Prelims Practice Questions — Euro zone inflation jump reinforces rate hike case

Question 1

Among the components of the euro area Harmonised Index of Consumer Prices (HICP) for May 2026, which one of the following recorded the highest year-on-year rate of price increase?

Accepted Answer

Energy

Answer

Services

Answer

Core inflation (excluding energy and food)

Answer

Food, alcohol and tobacco

Question 2

The European Central Bank (ECB), which is the monetary authority for the euro area and recently raised its three key policy rates in June 2026, was formally established in which one of the following years?

Accepted Answer

1998

Answer

1992

Answer

1999

Answer

2002

Question 3

The Harmonised Index of Consumer Prices (HICP), which is the official measure used by the European Central Bank to assess price stability against its 2% medium-term target, is compiled and published by which one of the following bodies?

Accepted Answer

Eurostat

Answer

European Central Bank

Answer

Directorate-General for Economic and Financial Affairs of the European Commission

Answer

Organisation for Economic Co-operation and Development (OECD)

UPSC Prelims Practice Questions — Euro zone inflation jump reinforces rate hike case

Q1. Among the components of the euro area Harmonised Index of Consumer Prices (HICP) for May 2026, which one of the following recorded the highest year-on-year rate of price increase?

Q2. The European Central Bank (ECB), which is the monetary authority for the euro area and recently raised its three key policy rates in June 2026, was formally established in which one of the following years?

Q3. The Harmonised Index of Consumer Prices (HICP), which is the official measure used by the European Central Bank to assess price stability against its 2% medium-term target, is compiled and published by which one of the following bodies?