Which of the following statement s about various inflation indexes in India is are correct 1 Produce...........

Economic Affairs Inflation

Which of the following statement/s about various inflation indexes in India is/are correct?

1. Producer Price Index (PPI) measures the average change in the price of goods and services either as they leave the place of production, or as they enter the production process.

2. Consumer Price Index (CPI) measures the change in average prices that a consumer pays.

3. PPI does not include services while Whole-sale Price index (WPI) includes services.

Select the correct answer using codes given below

1 only

2 and 3 only

1 and 2 only

All of the above

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Explanation:

...First statement is correct. Producer Price Index (PPI) measures the average change in the price of goods and services either as they leave the place of production, called output PPI or as they enter the production process, called input PPI.
PPI estimates the change in average prices that a producer receives.
Second statement is correct. Consumer Price Index (CPI) is the measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food and medical care. The CPI is calculated by taking price changes for each item in the predetermined basket of goods and averaging them; the goods are weighted according to their importance.
Third statement is incorrect. Whole-sale Price index (WPI) does not include services.