Consumer Price Index (CPI) is the preferred measure for adjusting:
A. Export duties
B. Interest rates on loans
C. Corporate tax rates
D. Social security payments and wages for inflation
Answer: Option D
Solution (By JKSSB Mock Tests)
CPI directly measures changes in the cost of living for households, making it the standard index for indexation of pensions, wages, and welfare benefits to maintain real purchasing power.
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