Prices of a given basket of commodities which are bought by the representative consumer is indicated by which of the following?

Consumer Price Index

The correct answer is Option (2) → Consumer Price Index

The Consumer Price Index (CPI) measures the average change in prices of a fixed basket of goods and services typically purchased by a representative consumer over time.

It reflects the cost of living and is commonly used to measure inflation from the consumer’s perspective.

In contrast: The Wholesale Price Index (WPI) measures price changes at the wholesale level, i.e., before goods reach the retail market.