| Consider the following statements regarding the Food price index in India |
| 1. Food price index consists of two sub-components, namely primary food articles and manufactured food products. |
| 2. The weight of the primary food articles is less than the manufactured food products. |
| Which of the statements given above is/are correct? |
A) Only 1
B) Only 2
C) Both 1 and 2
D) neither 1 nor 2
Correct Answer: A
Solution :
Consumer Food Price Index (CFPI) is a measure of change in retail prices of food products consumed by a defined population group in a given area with reference to a base year. The Central Statistics Office (CSO), Ministry of Statistics and Programme Implementation (MOSPI) started releasing Consumer Food Price Indices (CFPI) for three categories -rural, urban and combined - separately on an all India basis with effect from May, 2014. Like Consumer Price Index (CPI), the CFPI is also calculated on a monthly basis and methodology remains the same as CPI. The base year presently used is 2012. The CSO revised the Base Year of the CPI and CFPI from 2010 = 100 to 2012 = 100 with effect from the release of indices for the month of January 2015.
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