Inflation: WPI & CPI — Set 15
Economy Advanced · मुद्रास्फीति: WPI और CPI · Questions 141–141 of 141
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Which of the following is the correct sequence of price propagation from global crude oil spike to India's retail CPI?
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Correct Answer: B. B. Global crude → WPI fuel → WPI transport inputs → CPI fuel & transport components
The transmission sequence of a global crude oil spike: Global crude price rises → WPI Fuel & Power component rises immediately → input costs for transportation and manufacturing increase → WPI manufactured goods costs rise → eventually retail prices of fuel, transport, and goods in CPI rise. The transmission from global crude to CPI takes approximately 1-3 months with the current partial pass-through mechanism.