Q. With reference to Wholesale Price Index (WPI) consider the following statements:
1.WPI reflects changes in the average prices of goods and services bought by consumers.
2.WPI is released by the Economic Advisor in the Ministry of Commerce and Industry.
3.WPI helps in measuring macroeconomic conditions but not microeconomic conditions of the economy.
Which of the statements given above is/are correct?

[A] 1 and 2 only

[B] 2 and 3 only

[C] 2 only

[D] 1 and 3 only

Answer: C
Notes:

Explanation –

Statement 1 and 3 are incorrect. The Wholesale Price Index (WPI) reflects changes in the average prices of goods at the wholesale level rather than goods bought by consumers. WPI does not consider the price of services, and it does not reflect the consumer price situation in the country. WPI also helps in measuring macroeconomic and microeconomic conditions of the economy.

Statement 2 is correct. WPI is released by the Economic Advisor in the Ministry of Commerce and Industry.

Source: The Times of India