Multiple choice

In the recent past which among the following has been a prime factor in inflation in India?

  1. Decreasing per capita production of food grains

  2. Rising oil prices

  3. Rising tax rates

  4. Decrease in bank interest rates

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

India imports a significant portion of its crude oil requirements, making it vulnerable to international oil price fluctuations. When global oil prices rise, it increases costs across the economy (transportation, manufacturing, power generation) and contributes to inflationary pressures.

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