Question:
Which of the following statements about India’s inflation trends in 2024 are correct?
(1) CPI inflation fell to 3.65% in August 2024.
(2) Core inflation remained above 4% throughout FY 2024-25.
(3) WPI inflation turned negative in Q1 2024-25.
(4) Food inflation was the primary driver of CPI increases.
Choose the correct statements from the options given below:
(A) (1) and (4) only
(B) (2) and (3) only
(C) (1) and (2) only
(D) (3) and (4) only
The correct statements about India’s inflation trends in 2024 are (1) and (4) only: CPI inflation indeed fell to 3.65% in August 2024, and food inflation was identified as the primary driver of CPI increases. Core inflation did not remain above 4% throughout FY 2024-25, as it actually fell below this threshold, and WPI inflation turned negative in Q1 of 2024-25, but not consistently across all months. Therefore, the answer is:
(A) (1) and (4) only
Key Points
- CPI inflation in August 2024 was reported at 3.65%.
- Food inflation drove CPI increases, reaching 5.66% in August 2024.
- Core inflation fell below 4%, declining to around 3.5% by the end of the fiscal year.
- WPI inflation did turn negative briefly in June, but this was not a consistent trend for Q1 as a whole
This matches the evidence for options (1) and (4) only.