Economics · Inflation and National Income
Consider the following statements regarding the Consumer Price Index (CPI) framework in India: I. Revision of the CPI base year captures structural changes in consumption patterns reflected through Household Consumption Expenditure Survey (HCES) data. II. An increase in the number of items and services in the CPI basket necessarily increases the measured inflation rate, irrespective of changes in item-wise weights. III. A reduction in the weight of food and beverages in CPI indicates declining food price volatility in the economy. IV. Expansion in the number of rural and urban markets covered improves the representativeness of price data without shifting the underlying conceptual framework of inflation measurement. How many of the above statements are correct?
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