Inflation index & weighting - logical message
Question
Which one of the following statements best reflects the most logical, rational and crucial message conveyed by the passage?
Options
We must use WPI exclusively in measuring price rise and CPI should be done away with.
The present calculation of inflation rate does not correctly measure price rise of individual item/commodity.
Inflation data under-presents services in the consumption basket.
Knowledge of inflation rate is not really of any use to anybody in the country.
Explanation
The passage argues that a single composite index averages out the consumption baskets of diverse classes, meaning it obscures individual commodity prices. Option (b) perfectly aligns by criticizing the present aggregate calculation for failing to measure the "price rise of individual item/commodity." Options (a) and (d) use extreme absolutes ("exclusively", "not really of any use"), while (c) makes a specific claim about services being under-represented that is never stated in the text.
Answer: (b).
Question details
Year
2025
Paper
CSAT
Question
Q51
Section
Reading Comprehension
Sub-topic
Economy passage
Type
RC - Critical message
Difficulty
Medium
Source hint
Passage-based comprehension
Same sub-topic — other years
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