The Wholesale Price Inflation has increased in India during 2021-2022 due to which of the following factors ?<br>1. Sharp increase in international prices of crude oil<br>2. Decrease in economic activity post-Covid<br>3. Disruption of global supply chain<br>4. High freight cost<br>Select the <strong>correct</strong> answer using the code given below:

  1. A. 2 and 3 only
  2. B. 1, 3 and 4
  3. C. 1 and 2 only
  4. D. 1 and 4 only

Correct Answer: B. 1, 3 and 4

Explanation

The spike in WPI during 2021-2022 was primarily supply-driven due to high international crude oil prices, disrupted global supply chains, and high freight costs. A decrease in economic activity generally suppresses inflation.

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