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.
- 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.