The Wholesale Price Inflation has increased in India during 2021 - 2022 due to which of the following factors ?
1. Sharp increase in international p:rjces of crude oil
2. Decrease in economic activity post-Covid
3. Disruption of global supply chain
4. High freight cost
Select the correct answer using the code given below:
This questions was previously asked in
2023 CDS -2 GK
2 and 3 only
Incorrect Answer1, 3 and 4
Correct Answer1 and 2 only
Incorrect Answer1 and 4 only
Incorrect AnswerExplanation:
- International crude oil prices: Prices rose sharply in 2021-2022 due to high demand and supply disruptions, impacting wholesale prices in India.
- Decrease in economic activity post-Covid: Economic activity initially decreased during Covid, but by 2021-2022, demand was rebounding, contributing to price pressure rather than reducing it.
- Global supply chain disruption: The pandemic disrupted logistics and supply chains worldwide, causing delays and cost increases.
- High freight cost: Shipping and transportation costs increased due to supply chain issues, contributing to wholesale price inflation.
Correct Answer:
- Option 4: 1 and 4 only
- This option correctly identifies crude oil prices and high freight costs as contributors to the wholesale price inflation.
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By: Parvesh Mehta