MasteryExams
Economics • Indian EconomyMedium

Which of the following price indices is utilized by the Reserve Bank of India as the primary benchmark for its retail inflation targeting framework?

A. Wholesale Price Index (WPI)
B. Consumer Price Index - Combined (CPI-C)✓ Correct Answer
C. Consumer Price Index for Industrial Workers (CPI-IW) only
D. GDP Deflator

💡 Solution & Explanation

The Reserve Bank of India utilizes the Consumer Price Index - Combined as the anchor metric for its monetary policy framework and inflation targeting mandate following the Urjit Patel committee recommendations. The Wholesale Price Index captures producer-level price movements but fails to reflect retail consumer realities adequately.

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