Answer: [Option (c)] Only three statements
Statement 1 is correct as the article mentions that the CPI basket includes outdated items that no longer hold relevance in modern consumption patterns.
Statement 2 is incorrect as the article highlights that the CPI basket should reflect evolving needs and preferences, indicating that the weight allocation can change over time.
Statement 3 is correct as the article points out that the high weight assigned to cereals in the current CPI is considered excessive and fails to account for dietary shifts and government welfare programs.
Statement 4 is correct as the article states that the absence of up-to-date consumption expenditure data poses challenges in accurately reflecting changing consumption patterns in the CPI.
Therefore, only three statements (1, 3, and 4) are correct.