In India, contribution of food inflation to overall inflation is around 1/3rd to 1/5th. Within food inflation, contribution of food articles is higher because price rise in food articles is

examrobotsa's picture

Submitted by examrobotsa on

Q: 22 (CDS-I/2014)
In India, contribution of food inflation to overall inflation is around 1/3rd to 1/5th. Within food inflation, contribution of food articles is higher because price rise in food articles is

question_subject: 

Economics

question_exam: 

CDS-I

stats: 

0,57,47,57,33,13,1

keywords: 

{'food inflation': [0, 0, 0, 2], 'overall inflation': [0, 0, 0, 1], 'food articles': [0, 0, 2, 1], 'price rise': [0, 0, 1, 1], 'food products': [0, 0, 0, 1], 'weight': [0, 0, 1, 1], 'india': [8, 1, 7, 13]}

Option 1 states that the price rise in food articles is higher and their weight is also higher compared to food products. This means that food articles contribute more to food inflation than food products.

Food inflation is the increase in the prices of food items over time. It is a significant factor in overall inflation, which is the general increase in prices across different sectors of the economy. In India, the contribution of food inflation to overall inflation is around 1/3rd to 1/5th, which means that food inflation plays a substantial role in driving up the overall cost of living.

Within food inflation, the contribution of food articles, such as fruits, vegetables, and cereals, is higher. This is because the price rise in food articles is higher compared to food products such as processed and packaged food items. Additionally, the weightage or importance given to food articles in calculating food inflation is higher compared to food products. This means that changes in the prices of food articles have a greater impact on the overall calculation of food inflation.

Therefore, option 1 is the correct answer as it accurately describes the reasons why the contribution of food articles is higher within food inflation.