In India, headline inflation is based on1. Consumer Food Price Index (

1.	In India, headline inflation is based on1. Consumer Food Price Index (CFPI)2. Consumer Price Index - Rural Labourers (CPI - RL)3. Wholesale Price Index (WPI)4. Consumer Price Index-Combined (CPI-C)
Answer» Correct Answer - Option 4 : Consumer Price Index-Combined (CPI-C) The correct answer is Consumer Price Index-Combined (CPI-C). In India, headline inflation is based on Consumer Price Index-Combined (CPI-C). Headline inflation is the total inflation in an economy. The headline inflation figure includes inflation in a basket of goods that includes commodities like food and energy. It is different from core inflation, which excludes food and energy prices while calculating inflation. Most central banks use headline inflation or a similar measure as their target variable. The reason being headline inflation is a broad measure that closely represents the basket of goods and services consumed by most households. RBI also uses Headline Inflation. India's headline CPI for September dropped sharply to 5.35% YoY from 5.3% in August.

In India, headline inflation is based on1. Consumer Food Price Index (CFPI)2. Consumer Price Index - Rural Labourers (CPI - RL)3. Wholesale Price Index (WPI)4. Consumer Price Index-Combined (CPI-C)

Answer» Correct Answer - Option 4 : Consumer Price Index-Combined (CPI-C)

The correct answer is Consumer Price Index-Combined (CPI-C).

In India, headline inflation is based on Consumer Price Index-Combined (CPI-C).
Headline inflation is the total inflation in an economy.
The headline inflation figure includes inflation in a basket of goods that includes commodities like food and energy.
It is different from core inflation, which excludes food and energy prices while calculating inflation.
Most central banks use headline inflation or a similar measure as their target variable.
The reason being headline inflation is a broad measure that closely represents the basket of goods and services consumed by most households. RBI also uses Headline Inflation.
India's headline CPI for September dropped sharply to 5.35% YoY from 5.3% in August.