Inflation MCQ — 3 Practice Questions with Answers

Explanation

Both statements are incorrect. Statement 1: the WPI is released by the Office of the Economic Adviser under DPIIT (Ministry of Commerce and Industry), not MoSPI; MoSPI compiles the CPI. Statement 2: the divergence occurred because WPI gives a higher weight to fuel and manufactured products (more exposed to global commodity shocks), while CPI carries a larger weight for food and services.

Explanation

Both statements are correct. In April 2026, WPI inflation surged to a 42-month high of 8.3 percent led by a sharp rise in fuel and power prices, while retail CPI inflation stayed moderate at 3.48 percent, reflecting a divergence between wholesale and retail price trends.

Explanation

WPI inflation rose to a 42-month high of 8.3 percent in April 2026, up from 3.9 percent in March 2026. The 3.48 percent figure is the retail CPI inflation, and 24.71 percent is the Fuel and Power group inflation.