Indian Economy / Price Indices and Inflation
Wholesale Price Index in India
The Wholesale Price Index (WPI) is an index representing a basket of wholesale goods. Wholesale Price Index evaluates the
average change in the prices of different commodities at wholesale prices.
An index number is a statistical measure to study the changes in one item or in a phenomena comprising of number of items over a period of
time. Price indices are the most popular indices in gauging the change in prices of different commodities over a period.
- The commodities covered by WPI falls under three categories namely, (a) Primary Articles, (b) Fuel and Power and (c) Manufactured
- The base year for Wholesale Price Index is taken as 2011-12.
- WPI is being compiled by the Office of Economic Advisor (OEA), Ministry of Commerce and Industry, Government of India.
- Periodicity of release of WPI numbers is monthly in nature. In India, WPI is also called headline inflation rate.
- The Wholesale Price Index number is being utilized to study the inflation at the wholesale transaction stage for the Indian economy. For many sectors of
the economy of a country, it is also being used as a deflator. It is also used as a good indicator for making investment decisions.