RK Economics - GS
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Comprehensive coverage of Economics syllabus, concepts and current affairs for UPSC/SSC/State PSC
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The examination was lengthy and unpredictable, making it difficult for most candidates to attempt more than eighty questions.
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🚨 India’s Inflation Measurement System is Set for a Major Upgrade!

From 15 June, the Government of India will introduce a new Wholesale Price Index (WPI) series with 2022–23 as the base year. Alongside this, India will gradually transition towards a Producer Price Index (PPI) framework, aligning its statistical system with global best practices.

🔹 Why is this important?
WPI is widely used in contracts, price escalation clauses, and industrial pricing decisions.
PPI measures prices received by producers and is considered a better indicator of production-side inflation.
The move will improve the accuracy of inflation measurement and national income estimation.
New Input PPI, Output PPI, and Services PPI series will also be introduced.

🔹 Key Exam Takeaways
📌 New WPI Base Year: 2022–23
📌 Release Date: 15 June
📌 RBI uses CPI for monetary policy decisions, not WPI.
📌 PPI includes services and is more consistent with international accounting standards.
📌 India may gradually replace WPI with PPI over the next few years.
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