UPSC Prelims Practice Questions — PROVISIONAL ESTIMATES OF SERVICE PRODUCER PRICE INDICES (BASE YEAR 2022-23) FOR Q1 OF FY 2026-27 AND FINAL INDICES FOR Q4 OF FY 2025-26

Q1. With reference to the authority under which the coverage of India's Service Producer Price Index (base year 2022-23) was decided, which one of the following statements is correct?

  • A. The services were prescribed by the National Statistical Commission, whose prior approval is mandatory for every producer price index compiled in India
  • B. The services were listed in a statutory schedule under the Collection of Statistics Act, which alone determines the coverage of producer price indices
  • C. The services were recommended by a Working Group chaired by a Member of NITI Aayog, for which the Office of the Economic Adviser acted as the nodal office
  • D. The services were fixed by the International Monetary Fund's Producer Price Index Manual, whose coverage list India is bound to adopt in full

Q2. Of the services covered in the first phase of India's Service Producer Price Index (base year 2022-23), how many belong to the financial sector?

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

Q3. Consider the following statements comparing the Wholesale Price Index series with base year 2011-12 and the series with base year 2022-23: 1. The number of items in the index basket rose from 697 in the earlier series to 957 in the new series. 2. Weights in the new series are derived from Net Traded Value, whereas the earlier series had used Gross Value of Output. 3. Crude Petroleum and Natural Gas, earlier placed under 'Primary Articles', has been shifted to the 'Fuel and Power' major group in the new series. Which of the statements given above is/are correct?

  1. The number of items in the index basket rose from 697 in the earlier series to 957 in the new series.
  2. Weights in the new series are derived from Net Traded Value, whereas the earlier series had used Gross Value of Output.
  3. Crude Petroleum and Natural Gas, earlier placed under 'Primary Articles', has been shifted to the 'Fuel and Power' major group in the new series.
  • A. 1 and 3 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q4. In the Wholesale Price Index series with base year 2022-23, the method described as 'Targeted Mean Imputation' refers to:

  • A. Retaining the last price quotation received for an item and repeating it for subsequent periods until a fresh quotation arrives from the selected source
  • B. Replacing a price that is not reported for a period with an estimate derived from the observed price movement of comparable items in the same group
  • C. Assigning to each item a weight equal to the average of its output value over the three years centred on the chosen base year of the index
  • D. Adjusting the reported price of an item for changes in its quality by averaging its prices across all the markets selected for that item

Q5. Under the 2022-23 base year framework, which one of the following indices is the only one compiled using Purchaser's Price rather than Basic Price?

  • A. Wholesale Price Index of the new series, compiled by the Office of the Economic Adviser
  • B. Output Producer Price Index, compiled for goods produced across industries
  • C. Service Producer Price Index, compiled quarterly for seven selected services
  • D. Trial Input Producer Price Index, compiled for inputs purchased by industries

Q6. When the revised Wholesale Price Index with base year 2022-23 was launched, how many new producer price indices were introduced alongside it?

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

Q7. With reference to the Service Producer Price Indices released on 24 August 2026, consider the following: 1. The release carried provisional indices for Q1 of FY 2026-27 together with final indices for Q4 of FY 2025-26. 2. Telecom services recorded a year-on-year price change of less than one per cent in the quarter. 3. The indices for the quarter were compiled on the base year 2011-12, the 2022-23 base being applicable only to the Wholesale Price Index. 4. The Service PPI basket covers every service activity in the economy without exception. Which of the above is/are correctly identified?

  1. The release carried provisional indices for Q1 of FY 2026-27 together with final indices for Q4 of FY 2025-26.
  2. Telecom services recorded a year-on-year price change of less than one per cent in the quarter.
  3. The indices for the quarter were compiled on the base year 2011-12, the 2022-23 base being applicable only to the Wholesale Price Index.
  4. The Service PPI basket covers every service activity in the economy without exception.
  • A. 1 and 2
  • B. 2 and 4
  • C. 1, 3 and 4
  • D. 3 only

Q8. In the Service Producer Price Indices for Q1 of FY 2026-27, which one of the tracked services recorded the sharpest year-on-year price increase?

  • A. Telecom services, which posted the largest increase recorded by any service since the series began
  • B. Air (Passenger) transport, which rose by about 32 per cent over the corresponding quarter of the previous year
  • C. Banking services, whose index has risen in every single quarter since the base year
  • D. Railway freight services, which alone among the tracked services posted a double-digit increase

Q9. Consider the following pairs of an index and the body that compiles and releases it: 1. Wholesale Price Index (base 2022-23) — Office of the Economic Adviser, Department for Promotion of Industry and Internal Trade 2. Service Producer Price Index (base 2022-23) — Office of the Economic Adviser, Department for Promotion of Industry and Internal Trade 3. Consumer Price Index (Combined) — Ministry of Statistics and Programme Implementation 4. Index of Industrial Production — Reserve Bank of India Which of the above is/are correctly identified?

  1. Wholesale Price Index (base 2022-23) — Office of the Economic Adviser, Department for Promotion of Industry and Internal Trade
  2. Service Producer Price Index (base 2022-23) — Office of the Economic Adviser, Department for Promotion of Industry and Internal Trade
  3. Consumer Price Index (Combined) — Ministry of Statistics and Programme Implementation
  4. Index of Industrial Production — Reserve Bank of India
  • A. 1 and 3
  • B. 2 and 4
  • C. 1, 2 and 3
  • D. 3 and 4

Q10. Service Producer Price Indices are released quarterly with a lag of how many days from the close of the reference quarter?

  • A. 30 days
  • B. 45 days
  • C. 55 days
  • D. 70 days

Q11. Consider the following statements regarding India's shift from the Wholesale Price Index to Producer Price Indices: 1. The shift is stated to be in alignment with global best practices adopted by advanced economies and with the recommendations of the International Monetary Fund. 2. The Wholesale Price Index is to be discontinued as soon as the Producer Price Indices are released, with no parallel running of the two. 3. Unlike the Wholesale Price Index, which covers goods alone, the Producer Price Index framework covers services as well and follows the Supply and Use Tables framework of national accounts. Which of the statements given above is/are correct?

  1. The shift is stated to be in alignment with global best practices adopted by advanced economies and with the recommendations of the International Monetary Fund.
  2. The Wholesale Price Index is to be discontinued as soon as the Producer Price Indices are released, with no parallel running of the two.
  3. Unlike the Wholesale Price Index, which covers goods alone, the Producer Price Index framework covers services as well and follows the Supply and Use Tables framework of national accounts.
  • A. 1 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3