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Inflation Practice Questions

Union Budget 2026 Practice Questions

Inflation Practice Questions are important for UPSC, APPSC, TGPSC and State PSC exams. These practice questions cover inflation, CPI, WPI, monetary policy, RBI measures and price rise concepts with answers and explanations.

1. Inflation is defined as?

 
 
 
 

2. Deflation is?

 
 
 
 

3. Disinflation means?

 
 
 
 

4. Stagflation is?

 
 
 
 

5. Headline inflation in India measured by?

 
 
 
 

6. CPI base year currently?

 
 
 
 

7. WPI base year?

 
 
 
 

8. WPI published by?

 
 
 
 

9. CPI published by?

 
 
 
 

10. Core inflation excludes?

 
 
 
 

11. Demand-pull inflation caused by?

 
 
 
 

12. Cost-push inflation caused by?

 
 
 
 

13. Built-in inflation due to?

 
 
 
 

14. Phillips Curve shows?

 
 
 
 

15. Quantity Theory of Money equation?

 
 
 
 

16. Inflation targeting in India adopted in?

 
 
 
 

17. RBI inflation target?

 
 
 
 

18. MPC decides?

 
 
 
 

19. Repo rate increase leads to?

 
 
 
 

20. Base effect refers to?

 
 
 
 

21. GDP deflator measures?

 
 
 
 

22. GDP deflator formula?

 
 
 
 

23. WPI basket weight highest?

 
 
 
 

24. CPI basket weight highest?

 
 
 
 

25. Imported inflation occurs due to?

 
 
 
 

26. Hyperinflation example?

 
 
 
 

27. Creeping inflation is?

 
 
 
 

28. Walking inflation is?

 
 
 
 

29. Galloping inflation is?

 
 
 
 

30. Hyperinflation is?

 
 
 
 

31. Inflation tax refers to?

 
 
 
 

32. Menu costs of inflation are?

 
 
 
 

33. Shoe-leather costs are?

 
 
 
 

34. Fisher equation?

 
 
 
 

35. Real interest rate = ?

 
 
 
 

36. Inflation benefits?

 
 
 
 

37. Inflation hurts?

 
 
 
 

38. Skewflation is?

 
 
 
 

39. Reflation is?

 
 
 
 

40. Deflationary gap occurs when?

 
 
 
 

41. Inflationary gap when?

 
 
 
 

42. CPI-AL and CPI-RL for?

 
 
 
 

43. WPI does not capture?

 
 
 
 

44. Core WPI excludes?

 
 
 
 

45. Inflation expectations affect?

 
 
 
 

46. RBI uses which inflation for targeting?

 
 
 
 

47. Monetary policy tool to control inflation?

 
 
 
 

48. Fiscal policy to control demand-pull?

 
 
 
 

49. Supply-side measure for food inflation?

 
 
 
 

50. Indexation helps against?

 
 
 
 


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Inflation Practice Questions

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