UPSC Prelims Practice Questions — Index Numbers of Wholesale Price in India for the Month of December, 2025 (Base Year: 2011-12)

Q1. With reference to the compilation and release of the Wholesale Price Index (WPI) in India, consider the following statements. Which of the above is/are NOT correct?

  1. It is compiled by the Office of the Economic Adviser under the DPIIT, Ministry of Commerce & Industry.
  2. The current series uses the base year 2011-12 = 100.
  3. It is released on a monthly basis, generally around the 14th of the month.
  4. It is compiled and released by the National Statistical Office (NSO) under the Ministry of Statistics and Programme Implementation.
  • A. 1 and 2
  • B. 2 and 3
  • C. 3 only
  • D. 4 only

Q2. In the context of official price statistics in India, the Wholesale Price Index (WPI) most precisely measures which one of the following?

  • A. The average change in prices of goods transacted in bulk in the wholesale market, excluding services
  • B. The average change in retail prices of goods and services paid by final consumers
  • C. The average change in prices of services rendered by producers to households
  • D. The change in the cost of a fixed basket of consumption goods for industrial workers

Q3. Which one of the following was the base year of the earliest (first) Wholesale Price Index series introduced in India?

  • A. 1939
  • B. 1952-53
  • C. 1970-71
  • D. 1993-94

Q4. Since the introduction of the WPI with base year 1939, how many times has the WPI base year been revised (up to and including the current 2011-12 series)?

  • A. Five
  • B. Six
  • C. Seven
  • D. Eight

Q5. In the 2011-12 series of the Wholesale Price Index, which one of the following major groups carries the largest weight?

  • A. Primary Articles
  • B. Fuel & Power
  • C. Manufactured Products
  • D. Food Index (composite)

Q6. With reference to the weights and item composition of the 2011-12 WPI series, consider the following statements. Which of the above is/are NOT correct?

  1. Primary Articles carry a weight of about 22.62%.
  2. Fuel & Power carry a weight of about 13.15%.
  3. Manufactured Products carry a weight of about 64.23%.
  4. The total number of items in the WPI commodity basket is 564.
  • A. 1 and 2
  • B. 2 and 3
  • C. 1 only
  • D. 4 only

Q7. Which one of the following price indices serves as the nominal anchor for the Reserve Bank of India's flexible inflation targeting framework?

  • A. Wholesale Price Index
  • B. Consumer Price Index (Combined)
  • C. Consumer Price Index for Industrial Workers
  • D. GDP deflator

Q8. With reference to the characteristics of the Wholesale Price Index (WPI) as distinct from the Consumer Price Index (CPI), consider the following statements. Which of the above is/are NOT correct?

  1. The WPI does not cover services.
  2. In the 2011-12 series, WPI price quotations exclude indirect taxes.
  3. The WPI is compiled by the Office of the Economic Adviser, DPIIT.
  4. The WPI assigns a higher weight to food items than the CPI does.
  • A. 1 and 2
  • B. 3 only
  • C. 2 and 3
  • D. 4 only

Q9. December 2025 was notable as the first positive All-India WPI annual inflation print after several months of deflation/near-zero readings. What was this provisional rate?

  • A. 0.21%
  • B. 0.71%
  • C. 0.83%
  • D. 1.02%

Q10. The positive WPI inflation of December 2025 was attributed to price increases in certain sectors. Consider the following statements about the cited drivers. Which of the above is/are NOT correct?

  1. Minerals were cited as a driver of the December 2025 increase.
  2. Manufacture of machinery and equipment was cited as a driver.
  3. Textiles were cited as a driver.
  4. Crude petroleum and natural gas was cited as a driver.
  • A. 1 and 2
  • B. 3 only
  • C. 1, 2 and 3
  • D. 4 only

Q11. The current 2011-12 WPI series, which excluded indirect taxes from price quotations to bring the index conceptually closer to the Producer Price Index, was introduced in which year?

  • A. 2011
  • B. 2012
  • C. 2017
  • D. 2020

Q12. With reference to the Working Group constituted to revise the WPI series to base year 2022-23, consider the following statements. Which of the above is/are NOT correct?

  1. It is chaired by Prof. Ramesh Chand of NITI Aayog.
  2. It was constituted to revise the WPI base year from 2011-12 to 2022-23.
  3. Its mandate also includes examining the methodology for compilation of the Producer Price Index (PPI).
  4. It was tasked with shifting the RBI's monetary policy anchor from CPI to WPI.
  • A. 1 and 2
  • B. 2 and 3
  • C. 1, 2 and 3
  • D. 4 only