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The recent fall in international crude oil price has the highest impact on which of the following indicators?
Wholesale Price Index (WPI)
Consumer Price Index (CPI)
Core inflation
Index of Industrial Production (IIP)
The recent fall in international crude oil prices typically has a significant impact on the following indicators:
WPI (Wholesale Price Index): WPI is more directly influenced by changes in commodity prices, including crude oil. A fall in international crude oil prices tends to lead to a decline in WPI.
Core Inflation: Core inflation excludes volatile items like food and energy from the basket of goods used to calculate inflation. While a fall in crude oil prices may impact headline inflation (CPI and WPI), it might have a lesser effect on core inflation.
IIP (Index of Industrial Production): The decline in oil prices can positively impact industries that are significant consumers of energy, such as manufacturing. Lower input costs, including energy costs, may contribute to higher production and a positive impact on IIP.
CPI (Consumer Price Index): A fall in crude oil prices can contribute to lower transportation and energy costs, which are components of the CPI basket. As a result, CPI may also be influenced by changes in oil prices, although the impact might be somewhat moderated by other factors affecting consumer prices.
In summary, the highest impact is likely on WPI, followed by IIP, CPI, and potentially less on Core Inflation. The actual impact may vary based on other economic conditions and factors influencing each indicator.
By: Japjeet Singh ProfileResourcesReport error
Gurkirat Singh Nijjar
fuel and power as a component constitute onle 13.2 % of WPI...kindly rectify
The fuel has the highest weightage in WPI compared to CPI and IIP
Raman singh
WPI has 14% weightage to fuel not 40%
yes it is around 14%. but still fuel has the highest weightage in WPI compared to CPI and IIP
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