What is WPI-based Inflation

WPI-based Inflation

What is WPI-based Inflation
What is WPI-based Inflation
The Wholesale Price Index (WPI) reflects changes in the average prices of goods at the wholesale level — that is, commodities sold in bulk and traded between businesses or entities rather than goods bought by consumers. There are certain limitations in using WPI as a measure for inflation, as WPI does not consider the price of services, and it does not reflect the consumer price situation in the country.
 
WPI is released by the Economic Advisor in the Ministry of Commerce and Industry. The purpose of WPI is to inspect movement in prices of goods that reflect supply and demand in industry, construction and manufacturing. The index basket of WPI categorises commodities under three groups — primary articles, fuel and power & manufactured products.
 
In April 2017, the government revised the base year for WPI from 2004-05 to 2011-12. WPI is extensively used for short-term policy intervention as it is the only index that is available on a weekly basis.
 
WPI also helps in measuring macroeconomic and microeconomic conditions of the economy. WPI provides estimates of inflation at the wholesale transaction level for the economy overall. It also helps in timely intervention by the government to monitor inflation before the price hike spills over to retail prices.
 
The WPI-based inflation is used by the government in preparation of fiscal, trade, and other economic policies. Business organisations, policymakers, accountants, and statisticians use WPI as an indexing tool to formulate price adjustment clauses. Rise in WPI indicates inflationary pressure in the economy, and vice versa. The extent of rise in WPI is used to measure the level of wholesale inflation in the economy.
 

Latest Updates on WPI-based Inflation

Assam, Odisha among states clocking high rural inflation than urban in FY23

3 min read Last Updated : Feb 07 2023 | 09:15 AM IST
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Inflation: Your soap or cookies may not be getting pricier but lighter

4 min read Last Updated : May 13 2022 | 08:20 AM IST
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RBI leaves key rates on hold amid Omicron risks; analysts weigh in

3 min read Last Updated : Dec 08 2021 | 11:36 AM IST
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RBI leaves rates unchanged, says economy better prepared to deal with Covid

2 min read Last Updated : Dec 08 2021 | 11:10 AM IST
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RBI keeps rates on hold to support recovery, 'sail towards normal times'

3 min read Last Updated : Oct 08 2021 | 12:25 PM IST
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Wholesale inflation eases to 12.07% in June despite spike in fuel price

3 min read Last Updated : Jul 14 2021 | 11:15 PM IST
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India's June WPI inflation eases to 12.07% despite rise in fuel prices

1 min read Last Updated : Jul 14 2021 | 12:31 PM IST
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The current 'inflation' is a mystery. FinMin, RBI must tread carefully

4 min read Last Updated : Jul 05 2021 | 08:21 AM IST
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March WPI inflation at 8-yr high; economists see it in double digits in May

5 min read Last Updated : Apr 15 2021 | 11:39 PM IST
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Indian consumers turn more glum about future, less likely to spend: Survey

2 min read Last Updated : Apr 08 2021 | 11:33 AM IST
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Price hikes likely in consumer durables in March-April due to strong uptick

3 min read Last Updated : Mar 16 2021 | 12:47 PM IST
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WPI inflation rises to 4.17% in February on costlier food, fuel, power

1 min read Last Updated : Mar 15 2021 | 1:02 PM IST
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WPI inflation at 2.03% on costlier manufactured items, food prices ease

1 min read Last Updated : Feb 15 2021 | 12:48 PM IST
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RBI's monetary and Centre's fiscal policy are moving hand-in-glove

5 min read Last Updated : Feb 05 2021 | 2:36 PM IST
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Inflation worries play on RBI's mind, dampen mood of bond market

5 min read Last Updated : Feb 05 2021 | 1:04 PM IST
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RBI MPC highlights: Rates, stance unchanged, CRR to be restored, and more

3 min read Last Updated : Feb 05 2021 | 11:12 AM IST
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Inflation, Budget and its implications: RBI's two guiding forces on rates

4 min read Last Updated : Feb 05 2021 | 12:21 PM IST
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RBI keeps policy rate unchanged fourth time, maintains accommodative stance

2 min read Last Updated : Feb 05 2021 | 10:34 AM IST
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RBI maintains status quo for fourth time, keeps policy rate unchanged at 4%

4 min read Last Updated : Feb 05 2021 | 10:43 AM IST
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LIVE: RBI says will undo damage inflicted on economy by Covid-19 in FY21-22

2 min read Last Updated : Feb 05 2021 | 1:02 PM IST
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