About WPI

• Wholesale Price Index measures and tracks the changes in the price of goods in the stages before the retail level. It provides estimates of inflation at the wholesale transaction level for the economy as a whole.
• It is released by the Office of Economic Adviser, Department for Promotion of Industry and Internal Trade, Ministry of Commerce and Industry. 
• The base year is 2011-2012.
• The index basket consists of commodities under 3 main categories in decreasing order of weightage: Manufactured products, Primary Articles and Fuel and Power. 

Why in News?

• According to the latest WPI data, India’s wholesale prices fell 3.21% in May, the most since November 2015 as the country remained under the lockdown imposed to contain the spread of Covid-19.
• It is the first instance of deflation since June 2016.

• Deflation is a persistent fall in the general price level of goods and services.

Reference:

https://economictimes.indiatimes.com/news/economy/indicators/may-wholesale-prices-fall-signals-deflation/articleshow/76393562.cms?from=mdr