Option 1 -> Measures prices at wholesale level before reaching consumers, not retail consumer purchases.
Option 2 -> Specifically tracks weighted average prices of a basket of goods and services purchased by households.
Option 3 -> General term for selling price in market, not a systematic measure of consumer baskets.
Option 4 -> Refers to prices of raw materials or primary products, not consumer goods baskets.
Hence, Consumer Price Index -> The CPI is specifically designed to measure the change in prices paid by consumers for a representative basket of goods and services. It tracks items that typical households purchase including food, clothing, housing, transportation, medical care, and entertainment. This makes it the key indicator of inflation from a consumer's perspective and reflects the cost of living for the representative consumer. -> correct