[Solved] Which of the following statements about the Consumer Price Index (CPI) is FALSE? — Ans: CPI includes prices of capital goods and intermediate goods | Economic Awareness

Economic Awareness - Sectors of Indian Economy

Which of the following statements about the Consumer Price Index (CPI) is FALSE?

ACPI includes prices of capital goods and intermediate goods

BCPI is used as a key indicator of inflation

CCPI measures changes in retail prices of consumer goods and services

DCPI has different variants for industrial, agricultural, and rural labourers

Step-by-Step Solution

Step 1: Understand CPI scope
CPI measures retail price changes of consumer goods and services and is a key inflation indicator.
Step 2: Analyze the false statement
CPI excludes capital goods and intermediate goods; these are not part of consumer retail prices. CPI variants exist for different labour groups.
Final Answer:
CPI includes prices of capital goods and intermediate goods → Option A
Quick Check:
CPI excludes capital goods (this statement is false) ✅

Quick Trick: Remember CPI excludes capital and intermediate goods.

Common Mistakes:

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