With reference to the recent rise in prices of essential vegetables like onion, tomato, and potato, consider the following statements regarding inflation:
1. Food and beverages have a low weightage in the Consumer Price Index (CPI), so food price inflation has minimal impact on overall inflation.
2. An increase in the prices of essential vegetables leads to demand-pull inflation, which occurs when the cost of production rises.
3. To mitigate inflationary pressures from rising food prices, the government can intervene by tightening monetary policy.
Which of the statements given above is/are correct?
1
1 and 2 only
2
3 only
3
2 and 3 only
4
None of the above