WHOLESALE PRICE INDEX
- February 16, 2021
- Posted by: OptimizeIAS Team
- Category: DPN Topics
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WHOLESALE PRICE INDEX
Subject : Economy
Context : WPI quickens to 2.03% after easing in December.
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.
WPI Vs CPI
- While WPI keeps track of the wholesale price of goods, the CPI measures the average price that households pay for a basket of different goods and services.
- Even as the WPI is used as a key measure of inflation in some economies, the RBI no longer uses it for policy purposes, including setting repo rates. The central bank currently uses CPI or retail inflation as a key measure of inflation to set the monetary and credit policy.