Question

Read the following paragraphs and answer the question that follows: The current trend indicates that food and vegetable inflations continue to be pain points. Food inflation rose to 7.79 percent in June from 7.47 percent, and vegetable inflation rose to 14.74 percent from 10.85 percent. In the weeks ahead, the volatile food inflation will determine the course of overall inflation. For RBI too, the trend is a concern since under the current agreement with the government, if the inflation exceeds 11 percent it will have to explain to the government why it could not be contained (the lower limit is 2 percent). Which of the following options is the most appropriate?

• A. The first paragraph states a cause and the second illustrates the effect.
• B. The first paragraph provides information and the second highlights potential application of the information.
• C. The first paragraph is an assertion and the second provides an illustration of that assertion.
• D. The first paragraph highlights inflation conditions and the second hints at RBI’s inefficiency in managing the situation.
• E. The first paragraph highlights pain points and the second contains a remedy for them.

Hint:

When solving such comprehension-based questions, carefully identify whether the second paragraph extends, contrasts, or comments on the first. Focus on whether it provides an effect, remedy, or criticism, rather than just restating data.

Answer 1

The Correct Option is D

Step 1: Understanding the first paragraph
The first paragraph provides numerical data and factual information regarding the trend of food and vegetable inflation. It shows that both food inflation (7.47% to 7.79%) and vegetable inflation (10.85% to 14.74%) are rising. It also concludes that this volatility will determine the overall inflation trajectory in the coming weeks. Thus, the first paragraph is not about causes or remedies, but purely about the

current condition of inflation.

Step 2: Understanding the second paragraph
The second paragraph focuses on RBI’s obligations under its agreement with the government. If inflation crosses the upper limit of 11%, RBI must justify its failure to control it. This essentially points towards the inefficiency or limitations of RBI in managing inflation. It does not provide a remedy, but rather highlights RBI’s accountability and the possible consequences of inflation crossing the permissible range.

Step 3: Eliminating incorrect options
- (A) Incorrect, because the first paragraph is not a cause but a condition, and the second is not simply an effect—it is about RBI’s responsibility.
- (B) Incorrect, since the second paragraph does not show an “application” of the first paragraph’s information; it shows the challenge RBI faces.
- (C) Incorrect, because the first paragraph is not an assertion in a debatable sense but factual data.
- (E) Incorrect, as the second paragraph does not provide a remedy—it only highlights RBI’s difficulty.


Step 4: Correct option
Option (D) perfectly captures the relationship: the first paragraph describes the worsening inflation conditions, while the second shows that RBI may be inefficient or at least questioned about its inability to manage the situation.