Wholesale Price Index (WPI)- Relevance for UPSC Exam
- GS Paper 3: Indian Economy- Issues relating to planning, mobilization of resources, growth, development and employment.
Wholesale Price Index (WPI)- Context
- Recently released Wholesale Price Index (WPI) data shows an increased Inflation in wholesale prices to 11.39% in August, staying in the double digits for the fifth month in a row.
- Inflation in manufactured products escalated for the fourth month in a row to 11.4% as the second-order effects of high fuel prices kicked in.
Wholesale Price Index (WPI)– Key Points
- About WPI: The Wholesale Price Index represents the price of a basket of goods that are sold at wholesale rates. WPI focuses on the price of goods that are traded between corporations.
- It basically measures inflation at the factory level and not at the consumption point.
- WPI amounts to the average change in prices of commodities at the wholesale level.
- Key Objective of WPI: to monitor the price drifts that reflect demand and supply in manufacturing, construction and industry.
- Also helps in assessing macroeconomic as well as microeconomic conditions of an economy.
- Compiling (Publishing) Authority: It is published by the Office of Economic Advisor (Ministry of Commerce & Industry).
- Base Year for WPI: The base year of All-India WPI has been revised from 2004-05 to 2011-12 in 2017.
Key Differences between Consumer Price Index (CPI) and Wholesale Price Index (WPI)
|Publishing Authority||Office of Economic Advisor, Ministry of Commerce & Industry||– CPI (Combined) is compiled by Central Statistics Office, Ministry of Statistics and Programme Implementation.
– CPI (Industrial Worker), CPI (Rural Labourer) and CPI (Agricultural Labourer) are compiled by Labour Bureau
|Commodities Covered||Captures price changes in Goods only||Capture Price changes in both Goods and Services|
|Relevance||Tracks inflation at the producer level
Relevant for Producers
|Tracks changes in prices levels at the consumer level
Relevant for Consumers