Consider the following statements about Consumer Price Index 1 All the indices of CPI are compiled b...........

Economic Affairs Development and Indicators

Download Solution PDF

Consider the following statements about Consumer Price Index:

1.All the indices of CPI are compiled by Central Statistical Organisation.

2.The dearness allowance of Government employees is based on CPI.

Which of the statements given above is/are correct?

1 only

2 only

Both 1 and 2

Neither 1 nor 2

छोटे Courses बड़े Results

Master Development and Indicators

Prepare through Micro-courses

Try Now

Explanation:

2 only

All the indices of CPI are compiled by Central Statistical Organisation: This statement is incorrect. While the Central Statistical Organisation (CSO) is involved in the compilation of certain indices, various agencies compile different Consumer Price Indices (CPI) in India. For example, the CPI for Industrial Workers (CPI-IW) is compiled by the Labour Bureau.

The dearness allowance of Government employees is based on CPI: This statement is correct. The dearness allowance (DA) for government employees is often linked to the Consumer Price Index (CPI). The idea is to adjust the wages and salaries of employees in line with changes in the cost of living as reflected by the CPI.

Therefore, the correct answer is 2 only.