UPSC Prelims Practice Questions — Fuller expression

Q1. With reference to India's new Consumer Price Index (CPI) series with base year 2024=100 vis-à-vis the earlier 2012=100 series, consider the following statements: Which of the statements given above is/are correct?

  1. The new series replaces the 2012=100 base and uses the Household Consumption Expenditure Survey 2023-24 to update the consumption basket.
  2. The earlier six-group classification of the consumption basket has been replaced with twelve divisions to align with international standards.
  3. The new series has reduced the overall number of items in the CPI basket compared with the 2012=100 series, narrowing the index to essential goods only.
  • A. 1 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q2. India's first official Producer Price Index (PPI), being released alongside the new Wholesale Price Index series in 2026, is compiled and released by which one of the following?

  • A. Monetary Policy Department, Reserve Bank of India
  • B. National Statistical Office under the Ministry of Statistics and Programme Implementation
  • C. Office of the Economic Adviser, Department for Promotion of Industry and Internal Trade, Ministry of Commerce and Industry
  • D. Economic Division, Department of Economic Affairs, Ministry of Finance

Q3. Consider the following features attributed to India's revised inflation-measurement framework rolled out in 2026: Which of the above is/are NOT correct?

  1. Use of the Household Consumption Expenditure Survey 2023-24 to update the CPI consumption basket.
  2. Inclusion of modern services such as OTT subscriptions in the expanded 358-item CPI basket.
  3. Transfer of the flexible inflation-targeting mandate from the Reserve Bank of India to the Ministry of Statistics and Programme Implementation under the new series.
  4. Adoption of a decadal CPI base-year revision cycle synchronised with the population census.
  • A. 1 and 3
  • B. 2 and 4
  • C. 3 and 4 only
  • D. 1, 2 and 3

Q4. Under the redesigned Consumer Price Index series with base year 2024=100, into how many divisions is the household consumption basket classified to align with international (COICOP-style) standards?

  • A. 6
  • B. 8
  • C. 10
  • D. 12

Q5. Which one of the following is the primary inflation benchmark used by the Reserve Bank of India under the flexible inflation-targeting framework instituted through the 2016 amendment to the RBI Act?

  • A. Wholesale Price Index (WPI) compiled by the Office of the Economic Adviser
  • B. Producer Price Index (PPI) newly launched in 2026
  • C. Consumer Price Index (Combined) released by the Ministry of Statistics and Programme Implementation
  • D. GDP deflator estimated by the National Statistical Office