WPI

Subject : Economy

Context : India’s wholesale price inflation quickened to the highest level in eight months, reaching 1.48% in October 2020 as per provisional data, compared with 0% in October 2019 and 1.32% in September this year.

Concept :

Wholesale Price Index

• It is the most widely used inflation indicator in India.
• Published by the Office of Economic Adviser, Ministry of Commerce and Industry.
• All transactions at the first point of bulk sale in the domestic market are included.
• Major criticism for this index is that the general public does not buy products at wholesale price.
• The base year of All-India WPI has been revised from 2004-05 to 2011-12 in 2017.