To measure consumer price index (CPI) which of the following years are taken into consideration?

(A) Current Year.

(B) Preceeding Year.

(C) Base Year.

(D) Succeeding Year.

Choose the correct answer from the options given below:

Option 1 -> Includes Preceding Year and Succeeding Year which are not required for CPI calculation.

Option 2 -> Correctly identifies Current Year and Base Year which are essential for CPI measurement.

Option 3 -> Includes Preceding Year which is not necessary for CPI calculation.

Option 4 -> Excludes Current Year and includes Preceding and Succeeding Years which is incorrect.

Hence, Option 2: (A) and (C) only -> Consumer Price Index (CPI) is calculated by comparing the cost of a fixed basket of goods and services in the current year with the cost of the same basket in a base year. The formula is: CPI = (Cost in Current Year / Cost in Base Year) × 100. Only the Current Year (for measuring present prices) and Base Year (as reference point) are required. Preceding or Succeeding years are not part of the standard CPI calculation methodology. -> correct