WBCS.LIVE practice question

Inflation in India is

Solve this multiple-choice question and check the correct answer with its explanation below.

Answer options

  1. Double-digit > 0
  2. Single-digit > 0
  3. Negative
  4. Zero

Correct answer and explanation

Correct answer: Single-digit > 0

Explanation: āœ… Correct Answer: B) Single-digit > 0 šŸ“š Explanation: For most of the recent decades, inflation in India (measured by the CPI) has generally stayed within the 'single-digit' range, usually between 4% and 7%. The RBI works to keep inflation target near 4% to maintain economic stability. While there have been occasional periods of higher inflation, a single-digit positive rate is the most common state of the Indian economy. Managing this rate is a primary objective of the country's monetary policy.