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Q:

Which of the following items is the major reason for WPI-based high inflation in India?

  • 1
    Primary goods
  • 2
    Fuel and electricity
  • 3
    Manufacturing products
  • 4
    None of the above
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Answer : 3. "Manufacturing products"
Explanation :

Explanation: In India, three groups of commodities have major contribution in the calculation of inflation. In this, primary products contribute 20.1%, fuel and electricity (14.9%) and manufacturing products contribute 65%. Therefore, the biggest reason for high inflation in India is manufacturing products.

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