UPSC Prelims Practice Questions — Pricey food, dining out push retail inflation to a 13-month high of 3.5%

Question 1

In the context of retail inflation data released by MoSPI, the term 'Consumer Food Price Index (CFPI)' refers to which one of the following?

Accepted Answer

A sub-index of the Consumer Price Index that measures the year-on-year change in retail prices of food items, drawn from the 'Food and Beverages' group of the CPI

Answer

A wholesale-level price index for food articles compiled monthly by the Office of the Economic Adviser, DPIIT

Answer

A producer price index for agricultural commodities released by the Ministry of Agriculture and Farmers' Welfare

Answer

A composite index of food and fuel prices used by the RBI as the operational target under flexible inflation targeting

Question 2

Under which provision of the Reserve Bank of India Act, 1934 does the Central Government, in consultation with the Reserve Bank, determine the inflation target in terms of the Consumer Price Index once every five years?

Accepted Answer

Section 45ZA

Answer

Section 45U

Answer

Section 45Z

Answer

Section 45ZB

Question 3

As constituted under the Reserve Bank of India Act, 1934, the Monetary Policy Committee (MPC) that determines the policy rate required to achieve the inflation target consists of how many members?

Accepted Answer

Six

Answer

Four

Answer

Five

Answer

Seven

Question 4

Which one of the following is the principal agency that compiles and releases the monthly All-India Consumer Price Index (CPI) used as the headline metric for India's flexible inflation targeting framework?

Accepted Answer

Ministry of Statistics and Programme Implementation

Answer

Reserve Bank of India

Answer

Office of the Economic Adviser, Department for Promotion of Industry and Internal Trade

Answer

Central Statistics Office under NITI Aayog

UPSC Prelims Practice Questions — Pricey food, dining out push retail inflation to a 13-month high of 3.5%

Q1. In the context of retail inflation data released by MoSPI, the term 'Consumer Food Price Index (CFPI)' refers to which one of the following?

Q2. Under which provision of the Reserve Bank of India Act, 1934 does the Central Government, in consultation with the Reserve Bank, determine the inflation target in terms of the Consumer Price Index once every five years?

Q3. As constituted under the Reserve Bank of India Act, 1934, the Monetary Policy Committee (MPC) that determines the policy rate required to achieve the inflation target consists of how many members?

Q4. Which one of the following is the principal agency that compiles and releases the monthly All-India Consumer Price Index (CPI) used as the headline metric for India's flexible inflation targeting framework?