Economics · Inflation and Price Indices

Analyze the following statements regarding the Wholesale Price Index (WPI) in India and choose the correct combination from the options below: Statement A: The WPI uses a base year of 2011-2012 and assigns the highest weightage to the 'Manufactured Products' category, which accounts for approximately 64.2% of the index. Statement B: Unlike the Consumer Price Index (CPI), the WPI is highly sensitive to international commodity price movements, particularly crude oil and minerals, which are categorized under 'Fuel & Power' and 'Primary Articles'. Statement C: The WPI is considered a better measure than CPI for the RBI's primary inflation targeting framework because it captures the price changes at the first point of bulk sale. Statement D: The 'Fuel and Power' group in WPI has a weightage of approximately 13.15% and is often a primary driver of volatility in headline WPI numbers.