- Wholesale Price Index (WPI) 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.
- WPI basket does not cover services.
- 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 (64.2%), Primary Articles (22.6%) and Fuel and Power (13.2).
Why in News?
- The annual rate of inflation based on the All India Wholesale Price Index (WPI) number is (-) 4.12% (provisional) for the month of June, 2023 (over June, 2022) against (-) 3.48% recorded in May, 2023.
- The decline in the rate of inflation in June, 2023 is primarily due to fall in prices of mineral oils, food products, basic metals, crude petroleum & natural gas and textiles.