All you need to know about the Wholesale Price Index (WPI)
Wholesale Price Index (WPI)- It is defined as the index which basically tracks changes in the pricing of goods sold and traded in bulk quantity by wholesalers to other retailers. In layman’s terms, it measures the prices of products and services purchased by consumers and indicates the direction of inflation.
Who publishes the WPI in India?
In India, the Economic Adviser in the Ministry of Commerce and Industry publishes WPI statistical data. Analysts use numbers to track supply and demand dynamics in industry, manufacturing, and construction to provide final estimates.
• If the WPI index rises, it shows the inflationary pressures in the economy and vice versa.
• The rate at which the WPI rises month after month is used to calculate the level of wholesale inflation in the economy.
• WPI is overly dependent on primary articles, which are further subdivided into Food Articles and Non-Food Articles.
• Cereals, Paddy, Wheat, Pulses, Vegetables, Fruits, Milk, Eggs, Meat & Fish, and so on are examples of food articles.
• Oilseeds, minerals, and crude petroleum are examples of non-food articles.
• The second significant item in the WPI is Fuel & Power, which measures changes in the prices of petrol, diesel, and liquefied petroleum gas.
• Manufactured Goods are the largest basket. Textiles, apparel, paper, chemicals, plastic, cement, metals, and other manufactured items are included.
• Sugar, tobacco products, vegetable and animal oils, and fats are also included in the Manufactured Goods basket.
WPI Food Index– It is defined as the sub-index of WPI, which is calculated with a combination of Food Articles from the Primary Articles basket with Food Products from the Manufactured Products basket.
