What is Wholesale Price Index (WPI)?

Wholesale Price Index (WPI) index reflects the average price change of goods that are bought and sold in the wholesale market. WPI is published by the Office of Economic Adviser, Ministry of Commerce and Industry.

The Government periodically reviews and revises the base year of the macroeconomic indicators as a regular exercise to capture structural changes in the economy and improve the quality, coverage and representatives of the indices.

Wholesale Price Index

In this direction, the base year of All-India WPI has been revised from 2004–05 to 2011–12 by the Office of Economic Advisor (OEA), Department of Industrial Policy and Promotion, Ministry of Commerce and Industry to align it with the base year of other macroeconomic indicators like the Gross Domestic Product (GDP) and Index of Industrial Production (IIP).

The Wholesale Price Index (WPI) series in India has undergone six revisions in 1952–53, 1961–62, 1970–71, 1981–82, 1993–94 and 2004–05 so far.

The current series is the seventh revision. The revision entails shifting the base year to 2011–12 from 2004–05, changing the basket of commodities and assigning new weights to the commodities.

The data for WPI is monitored and updated taking into the account all the 679 items that form the index. The index basket of the present 2011–12 series has a total of 697 items including 117 items for Primary Articles, 16 items for Fuel & Power and 564 items for Manufactured Products.

The various commodities taken into consideration in computing the WPI can be categorized into primary article, fuel and power, and manufactured goods.

Primary articles included in the computation of WPI include food articles, non-food articles and minerals. In the fuel, power, light and lubricants, electricity, coal mining and mineral oil are included.

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The manufactured goods category encompasses food products; beverages, tobacco and tobacco products, wood and wood products, textiles, paper and paper products, basic metals and alloys, rubber and rubber products and many others.

For the month of April, 2018, the final Wholesale Price Index for All Commodities (Base: 2011–12=100) stood at 117.3 as compared to 116.8 (provisional) and annual rate of inflation based on final index stood at 3.62 percent as compared to 3.18 percent (provisional) respectively as reported on 14.05.2018.

The annual rate of inflation, based on monthly WPI, stood at 5.77% (provisional) for the month of June, 2018 (over June, 2017) as compared to 4.43% (provisional) for the previous month and 0.90% during the corresponding month of the previous year.

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