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Indian Economy / Price Indices and Inflation

Wholesale Price Index in India


    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 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.

    • The commodities covered by WPI falls under three categories namely, (a) Primary Articles, (b) Fuel and Power and (c) Manufactured products.
    • 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.