: Read the following passage and answer the given questions. The latest retail inflation data once again highlights the continuous volatility in food prices, which **continues** to impact overall inflation and economic growth, particularly personal consumption. In February, the Consumer Price Index (CPI) remained almost unchanged from the previous month at 5.09%. However, food inflation, measured by the Consumer Food Price Index, rose by 36 basis points to 8.66%. Among food items, vegetable prices remained the most concerning, with inflation in this category surging to 30.3% year-on-year—an increase of 315 basis points from January. Cereal inflation, the most significant component in the food index, remained high at 7.6%, only slightly lower than January’s 7.83%. The widely consumed potato-onion-tomato group _______________________ vegetable inflation. Potato prices, which had declined by nearly 2% in January, shot up to 12.4% inflation. Onion prices surged by 22.1%, while tomato inflation rose by nearly 400 basis points to reach a six-month high of 42%. Data from the Department of Consumer Affairs' daily monitoring dashboard indicates no relief, with average retail prices of potatoes, onions, and tomatoes as of March 14 being 21.3%, 41.4%, and 35.2% higher, respectively, compared to a year ago. Despite government interventions, such as a three-month-old ban on onion exports, prices remain stubbornly high. The outlook remains grim, with onion production in the 2023-24 horticulture year expected to decline by over 15.6% and potato production estimated to drop by nearly 2%, as per the Ministry of Agriculture’s First Advance Estimates released on March 7. Additionally, water storage levels at 150 reservoirs were at 40% of capacity as of March 14, lagging behind both the 10-year average and last year's levels. This shortfall is particularly severe in the southern region, where the deficit is 29%. Reserve Bank of India Deputy Governor Michael Patra recently warned that high food inflation is weighing heavily on private consumption, which constitutes 57% of GDP, especially in rural areas. To ensure **balance** in economic growth, inflation must be controlled. With elections approaching, policymakers face the challenge of preventing a worsening economic situation in the coming months by implementing more regulated measures and improving the **handle** of food price stability to ensure economic resilience.
Based on the passage, which of the following statements is/are true?
(I) The Consumer Price Index (CPI) in February increased significantly compared to the previous month.
(II) The Ministry of Agriculture’s First Advance Estimates indicate that onion production in the 2023-24 horticulture year is expected to decline by over 15.6%.
(III) Water storage levels in 150 reservoirs as of March 14 were above both the 10-year average and last year’s levels.

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**Solution:**

1. Statement (I) says the CPI in February increased significantly compared to the previous month. The passage states that CPI remained almost unchanged at 5.09%, so this statement is false.

2. Statement (II) mentions that onion production is expected to decline by over 15.6% in 2023-24. The passage confirms this exactly, stating the Ministry of Agriculture’s First Advance Estimates expect onion production to fall by over 15.6%.

3. Statement (III) claims water storage levels in 150 reservoirs as of March 14 were above both the 10-year average and last year's levels. The passage states the opposite: water storage was at 40% capacity, below both the 10-year average and last year's levels.

Therefore, only statement (II) is true.

**Answer:** (e) Only (II)

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