Which of the following statement/statements is/are valid in connection with inflation?

I. Cost-push inflation cycle of milk is becoming more and more pronounced in India.

II. The Bharat Atta initiative of the Government has played a considerable role in containing wheat inflation in India.

III. Retail Inflation has considerably increased
in the beginning of 2024 owing to increasing commodity prices.

IV. The Bharat Dal initiative has also been extended to include moong dal.

Select the correct answer using the codes given below:

Question

Question

This question was previously asked in

APPSC Group-1 (Prelims) Exam Official Paper-I (Held On: 17 Mar, 2024)

Answer 1

The correct answer is II, III and IV.

Key Points

Bharat Atta initiative: This initiative by the government has been instrumental in controlling wheat inflation, making it a significant factor in the context of inflation in India (Statement II).
Retail Inflation in early 2024: A notable rise in retail inflation has been observed at the beginning of 2024 due to increasing commodity prices, validating the importance of Statement III.
Bharat Dal initiative: The extension of the Bharat Dal initiative to include moong dal is a crucial step in managing inflation related to pulses, thus supporting Statement IV.
Cost-push inflation: Although cost-push inflation is a valid concept, the statement regarding the cost-push inflation cycle of milk becoming more pronounced in India (Statement I) is not supported by significant evidence, hence it is not included in the correct answer.

Additional Information

Cost-push inflation: This occurs when the overall price levels increase due to rising costs of wages and raw materials. It is different from demand-pull inflation, which is driven by higher demand.
Bharat Atta initiative: A government program aimed at stabilizing wheat prices and ensuring affordability of wheat products. This helps in controlling food inflation, particularly for a staple grain like wheat.
Retail Inflation: This measures the increase in price levels of goods and services purchased by households. It is commonly tracked via the Consumer Price Index (CPI).
Bharat Dal initiative: This initiative focuses on ensuring the availability and price stability of pulses, an essential protein source in the Indian diet. The inclusion of moong dal broadens its impact.