In India,which one of the following is responsible for maintaining price stability by controlling inflation?

A Department of Consumer Affairs

B Expenditure Management Commission

C Financial Stability and Development Council

D Reserve Bank of India

Correct answer: (d) Reserve Bank of India

Explanation

A
Department of Consumer Affairs
Department of Consumer Affairs. Price monitoring and essentials; not the inflation-targeting authority.
B
Expenditure Management Commission
Expenditure Management Commission. A fiscal-spend body, now wound down.
C
Financial Stability and Development Council
FSDC. Coordination on financial stability, chaired by the Finance Minister.
D
Reserve Bank of India
Reserve Bank of India. Statutory inflation-targeting monetary authority.

Summary. Official key is (d) RBI. Under the RBI Act (after 2016), price stability — the inflation target — is the primary monetary objective, operated by the Monetary Policy Committee.

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2020 · Q67 · General Studies · 2 marks
Consider the following statements: 1. The weightage of food in Consumer Price Index (CPI) is higher than that in Wholesale Price Index (WPI). 2. The WPI does not capture changes in the prices of services, which CPI does. 3. Reserve Bank of India has now adopted WPI as its key measure of inflation and to decide on changing the key policy rates. Which of the statements given above is/are correct?
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