UPSC Prelims Practice Questions — PRESS RELEASE OF CONSUMER PRICE INDEX ON BASE 2024=100 FOR JULY, 2026

Q1. With reference to the revised Consumer Price Index series on base 2024=100, consider the following: 1. The weighting diagram of the series is derived from the Household Consumption Expenditure Survey 2023-24. 2. The series was formally launched with its first press release in February 2026. 3. It replaced an earlier all-India consumer price index series compiled on base 2011-12=100. 4. Its launch coincided with the simultaneous shifting of the wholesale price index to base 2022-23. Which of the above is/are correctly identified?

  1. The weighting diagram of the series is derived from the Household Consumption Expenditure Survey 2023-24.
  2. The series was formally launched with its first press release in February 2026.
  3. It replaced an earlier all-India consumer price index series compiled on base 2011-12=100.
  4. Its launch coincided with the simultaneous shifting of the wholesale price index to base 2022-23.
  • A. 1 and 2
  • B. 2 and 3
  • C. 1, 3 and 4
  • D. 2 and 4

Q2. The Consumer Price Index series on base 2024=100 is the first Indian retail price index to be compiled under which one of the following international frameworks, adopted in place of the earlier structure of six broad groups?

  • A. Classification of Individual Consumption According to Purpose, 1999 revision
  • B. Classification of Individual Consumption According to Purpose, 2018 revision
  • C. International Standard Industrial Classification, Revision 4
  • D. Central Product Classification, Version 2.1

Q3. Regarding the changes made in the basket and sample of the Consumer Price Index when the base was shifted to 2024=100, consider the following: 1. The total number of weighted items at the all-India level rose from 299 to 348. 2. The number of services items rose from 40 to 50. 3. The number of goods items rose from 259 to 308. 4. The number of sample markets rose from 2,295 to 2,860. Which of the above is/are correctly identified?

  1. The total number of weighted items at the all-India level rose from 299 to 348.
  2. The number of services items rose from 40 to 50.
  3. The number of goods items rose from 259 to 308.
  4. The number of sample markets rose from 2,295 to 2,860.
  • A. 1, 2 and 3
  • B. 2, 3 and 4
  • C. 1 and 4 only
  • D. 3 and 4 only

Q4. In the item hierarchy adopted for the Consumer Price Index on base 2024=100, how many divisions constitute the topmost level of classification?

  • A. 6
  • B. 10
  • C. 12
  • D. 43

Q5. The all-India CPI (General) index number of 107.94 reported for July 2026 measures prices relative to the average price level of which one of the following reference periods?

  • A. April 2023 to March 2024
  • B. January 2024 to December 2024
  • C. April 2024 to March 2025
  • D. January 2023 to December 2023

Q6. Which one of the following items recorded the highest year-on-year inflation among all items in the Consumer Price Index for July 2026?

  • A. Ginger
  • B. Gold ornaments
  • C. Silver jewellery
  • D. Garlic

Q7. Consider the following statements comparing the present monetary policy framework of India with the position before it: 1. The inflation target is specified in terms of the Consumer Price Index and was retained at 4% in the review notified in March 2026. 2. The review of March 2026 widened the tolerance band around the target from two percentage points to three percentage points on either side. 3. The framework acquired a statutory basis only after the Reserve Bank of India Act was amended in 2016; before that, India had no legislated numerical inflation target. Which of the statements given above is/are correct?

  1. The inflation target is specified in terms of the Consumer Price Index and was retained at 4% in the review notified in March 2026.
  2. The review of March 2026 widened the tolerance band around the target from two percentage points to three percentage points on either side.
  3. The framework acquired a statutory basis only after the Reserve Bank of India Act was amended in 2016; before that, India had no legislated numerical inflation target.
  • A. 1 and 2 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q8. With reference to the statutory arrangements governing the Monetary Policy Committee, consider the following: 1. It has six members, of whom the Governor of the Reserve Bank of India is the ex officio chairperson. 2. In the event of an equality of votes, the Deputy Governor in charge of monetary policy exercises a casting vote. 3. It is required to meet at least four times in a year, and the quorum for its meetings is four members. 4. The inflation target is deemed to have been missed if average inflation lies outside the tolerance band for three consecutive quarters. Which of the statements given above is/are correct?

  1. It has six members, of whom the Governor of the Reserve Bank of India is the ex officio chairperson.
  2. In the event of an equality of votes, the Deputy Governor in charge of monetary policy exercises a casting vote.
  3. It is required to meet at least four times in a year, and the quorum for its meetings is four members.
  4. The inflation target is deemed to have been missed if average inflation lies outside the tolerance band for three consecutive quarters.
  • A. 1 and 2 only
  • B. 2, 3 and 4
  • C. 1, 3 and 4
  • D. 1, 2, 3 and 4

Q9. Within the National Statistical Office, the primary responsibility for capturing retail price quotations on the ground for the Consumer Price Index rests with which one of the following divisions?

  • A. National Accounts Division
  • B. Economic Statistics Division
  • C. Social Statistics Division
  • D. Field Operations Division

Q10. The monthly all-India Consumer Price Index is compiled and released by an office functioning under which one of the following?

  • A. Department of Consumer Affairs under the Ministry of Consumer Affairs, Food and Public Distribution
  • B. National Statistical Office under the Ministry of Statistics and Programme Implementation
  • C. Office of the Economic Adviser under the Ministry of Commerce and Industry
  • D. Department of Economic Affairs under the Ministry of Finance

Q11. In the new Wholesale Price Index series on base 2022-23 launched in June 2026, the number of items in the basket increased from 697 in the previous series to how many?

  • A. 807
  • B. 857
  • C. 957
  • D. 1,057

Q12. For July 2026, which one of the following sub-indices recorded the highest index value?

  • A. Consumer Price Index (General), Rural
  • B. Consumer Food Price Index, Rural
  • C. Consumer Price Index (General), Urban
  • D. Consumer Food Price Index, Urban