UPSC Prelims Practice Questions — CONSUMER PRICE INDEX NUMBERS ON BASE 2012=100 FOR RURAL, URBAN AND COMBINED FOR THE MONTH OF DECEMBER, 2025

Q1. Since the launch of the CPI (Rural, Urban and Combined) series in 2011, how many distinct base years has this series been compiled on (including the latest revision)?

  • A. Two
  • B. Three
  • C. Four
  • D. Five

Q2. With reference to the base years and weighting sources of the CPI (Rural, Urban and Combined) series, consider the following statements: 1. The series was first launched on base 2010=100. 2. The 2012=100 series derives its weights from the Consumer Expenditure Survey of the NSS 68th Round (2011-12). 3. The latest base revision adopts 2024=100, using the Household Consumption Expenditure Survey 2023-24. 4. The weights of the 2012=100 series were drawn from the Household Consumption Expenditure Survey conducted under the NSS 66th Round. Which of the above is/are correctly identified?

  1. The series was first launched on base 2010=100.
  2. The 2012=100 series derives its weights from the Consumer Expenditure Survey of the NSS 68th Round (2011-12).
  3. The latest base revision adopts 2024=100, using the Household Consumption Expenditure Survey 2023-24.
  4. The weights of the 2012=100 series were drawn from the Household Consumption Expenditure Survey conducted under the NSS 66th Round.
  • A. 1 and 2 only
  • B. 1, 2 and 3
  • C. 2, 3 and 4
  • D. 1 and 4 only

Q3. Which one of the following is the lead agency that compiles and releases the CPI (Rural, Urban and Combined) numbers on base 2012=100?

  • A. National Statistical Office under the Ministry of Statistics and Programme Implementation
  • B. Labour Bureau under the Ministry of Labour and Employment
  • C. Office of the Economic Adviser under the Department for Promotion of Industry and Internal Trade
  • D. Monetary Policy Department of the Reserve Bank of India

Q4. Consider the following statements comparing the CPI (Combined) with related price indices: 1. Unlike the CPI (Combined) compiled by the NSO, the CPI for Industrial Workers is compiled by the Labour Bureau. 2. The Wholesale Price Index is released by the Office of the Economic Adviser in the Ministry of Commerce and Industry, whereas the CPI (Combined) is released by MoSPI. 3. The CPI-IW and the CPI (Combined) are both currently compiled on the base year 2012=100. Which of the statements given above is/are correct?

  1. Unlike the CPI (Combined) compiled by the NSO, the CPI for Industrial Workers is compiled by the Labour Bureau.
  2. The Wholesale Price Index is released by the Office of the Economic Adviser in the Ministry of Commerce and Industry, whereas the CPI (Combined) is released by MoSPI.
  3. The CPI-IW and the CPI (Combined) are both currently compiled on the base year 2012=100.
  • A. 1 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q5. By how many basis points did the All-India headline CPI inflation of December 2025 rise over its November 2025 level?

  • A. 62 basis points
  • B. 120 basis points
  • C. 133 basis points
  • D. 46 basis points

Q6. The All-India headline CPI inflation of 1.33% reported for December 2025 was computed on which base year?

  • A. 2012 = 100
  • B. 2024 = 100
  • C. 2011-12 = 100
  • D. 2010 = 100

Q7. Under the notified factors constituting a failure of the inflation target, for how many consecutive quarters must average CPI inflation stay outside the tolerance band for the RBI to be deemed to have failed?

  • A. Two quarters
  • B. Three quarters
  • C. Four quarters
  • D. Six quarters

Q8. Under India's Flexible Inflation Targeting framework, the 'nominal anchor' for monetary policy is best defined as which one of the following?

  • A. CPI (Combined) inflation, which the Monetary Policy Committee targets at 4%
  • B. The Wholesale Price Index inflation rate targeted by the RBI
  • C. The CPI for Industrial Workers used to fix dearness allowance
  • D. The repo rate periodically set by the Monetary Policy Committee

Q9. The lower tolerance limit of 2%, below which the CPI inflation remained for the fourth consecutive month up to December 2025, forms part of the inflation target notified under which section of the RBI Act, 1934?

  • A. Section 45ZA
  • B. Section 45ZN
  • C. Section 45IC
  • D. Section 45U

Q10. With reference to the disinflation episode reflected in the December 2025 CPI data, consider the following statements: 1. Headline CPI inflation stayed below the RBI's lower tolerance limit for the fourth consecutive month. 2. Food inflation (CFPI) remained negative for the seventh consecutive month. 3. Urban headline inflation was lower than rural headline inflation in December 2025. 4. The CFPI of December 2025 (-2.71%) was higher than the -3.91% recorded in November 2025. Which of the above is/are NOT correct?

  1. Headline CPI inflation stayed below the RBI's lower tolerance limit for the fourth consecutive month.
  2. Food inflation (CFPI) remained negative for the seventh consecutive month.
  3. Urban headline inflation was lower than rural headline inflation in December 2025.
  4. The CFPI of December 2025 (-2.71%) was higher than the -3.91% recorded in November 2025.
  • A. 1 only
  • B. 3 only
  • C. 2 and 4
  • D. 1 and 3

Q11. With reference to the CPI series that existed before the launch of the CPI (Rural/Urban/Combined) in 2011, consider the following statements: 1. The CPI for Industrial Workers (CPI-IW) is compiled for industrial workers and is used for dearness allowance fixation. 2. The CPI for Urban Non-Manual Employees (CPI-UNME) was compiled to cover agricultural labourers. 3. The CPI-AL and CPI-RL cover agricultural labourers and rural labourers respectively. Which of the statements given above is/are correct?

  1. The CPI for Industrial Workers (CPI-IW) is compiled for industrial workers and is used for dearness allowance fixation.
  2. The CPI for Urban Non-Manual Employees (CPI-UNME) was compiled to cover agricultural labourers.
  3. The CPI-AL and CPI-RL cover agricultural labourers and rural labourers respectively.
  • A. 1 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q12. In the CPI 2012=100 series, which one of the following groups carries the single largest weight in the CPI-Rural basket?

  • A. Food and beverages
  • B. Housing
  • C. Miscellaneous
  • D. Fuel and light