What is Wholesale Price Index (WPI) ?

Wholesale Price Index (WPI)

  • WPI measures the change in price level at wholesale market.
  • WPI – consists of 676 commodities (services are not included in WPI in India).
  • It is measured on year-on-year basis i.e., rate of change in price level in a given month vis a vis corresponding month of last year.
  • This is also known as point to point inflation.
  • This index is the most widely used inflation indicator in India.
  • This is published by the Office of Economic Adviser, Ministry of Commerce and Industry.

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  • WPI captures price movements in a most comprehensive way.
  • The current series of Wholesale Price Index has 2011-12 as the base year.
  • In India, there are three main components in WPI – Primary Articles (weight: 20.12%), Fuel & Power (weight: 14.91%) and Manufactured Products (weight: 64.97).
  • Within WPI, Food commodities (from which Food Inflation) have a combined weight of 24.31%.
  • This includes “Food Articles” in the Primary Articles (14.34%) and “Food Products” in the Manufactured Products category (9.97%).
  • Food Inflation is also calculated on year-on-year basis.

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