UPPSC PCS - 2021

Given below are two statements one is labelled as Assertion (A) and other as Reason (R) Assertion (A) : The government faces a tough time tackling the bottleneck inflation. Reason (R) : The situation is due to deficiencies existing in the economy such as supply bottleneck and inefficient distribution. Select the correct answer from the codes given below. Codes:

Year Asked: 2021

A
Both (A) and (R) are true and (R) is correct explanation of (A)
B
Both (A) and (R) are true, but (R) is not correct explanation of (A)
C
(A) is true, but (R) is false
D
(A) is false, but (R) is true

Correct Answer

A. Both (A) and (R) are true and (R) is correct explanation of (A)

Detailed Explanation

Both statements are true, and the reason directly explains the assertion, so option A is correct.

Bottleneck inflation is price rise caused by supply-side constraints: a sector cannot expand output fast enough to meet demand, so prices rise there and spread through the economy. Storage gaps, poor transport and logistics, long middleman chains and weak market linkages make it hard to move goods from producers to consumers, which is exactly what the reason describes. Because these are structural deficiencies, demand-management tools like monetary tightening work only partly, which is why the government finds it tough to tackle.

  • Option B is wrong because the reason is not merely true; it is the cause of the difficulty stated in (A).
  • Option C is wrong because the reason correctly describes supply-side deficiencies, a point repeatedly made in the Economic Survey and RBI commentary.
  • Option D is wrong because the assertion reflects an accepted reality in structural inflation debates.

Mains angle: link this to agricultural marketing reforms (APMC, e-NAM), cold chains and food processing, which target the supply-side gaps behind food inflation.

Trap: Candidates see 'inflation' and assume the reason must be demand-side, or accept that the reason is true but pick B because they think it is not the 'correct' explanation. Ask whether the reason explains why the problem is hard. Here it does.

This question appeared in UPPCS 2021 General Studies Paper I.

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