UPSC Prelims Practice Questions — WPI inflation jumps to 9.7% in May on surging fuel prices

Q1. With reference to the Service Producer Price Index (Service PPI) launched by the Government of India in June 2026, consider the following sectors: 1. Banking 2. Road Freight Transport 3. Insurance 4. Hospitality and Tourism Which of the above is/are correctly identified as sectors initially covered under the Service PPI?

  1. Banking
  2. Road Freight Transport
  3. Insurance
  4. Hospitality and Tourism
  • A. 1 and 3 only
  • B. 2 and 4 only
  • C. 1, 2 and 3 only
  • D. 1, 3 and 4 only

Q2. How many services are initially covered under the Service Producer Price Index (Service PPI) released by the Office of the Economic Adviser, DPIIT, in June 2026?

  • A. Five
  • B. Seven
  • C. Nine
  • D. Twelve

Q3. In the context of the new Producer Price Index (PPI) framework released by India in June 2026, what does the 'Output Producer Price Index (OPPI)' measure?

  • A. The average change in prices received by domestic producers for the goods they produce, at the first point of sale
  • B. The change in retail prices paid by final consumers for a fixed basket of goods and services
  • C. The change in input costs incurred only by manufacturers in the organised sector
  • D. The change in landed cost of all imported goods at Indian ports

Q4. With reference to the revised Wholesale Price Index (WPI) series with base year 2022-23 vis-à-vis the earlier series with base year 2011-12, consider the following statements: 1. The number of items in the commodity basket has been expanded from 697 to 957. 2. Crude petroleum and natural gas have been shifted from the 'Primary Articles' group to the 'Fuel and Power' group. 3. Weights in the new series are derived using Net Traded Value instead of Gross Value of Output. Which of the statements given above is/are correct?

  1. The number of items in the commodity basket has been expanded from 697 to 957.
  2. Crude petroleum and natural gas have been shifted from the 'Primary Articles' group to the 'Fuel and Power' group.
  3. Weights in the new series are derived using Net Traded Value instead of Gross Value of Output.
  • A. 1 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3