- 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?
- Wholesale prices fell for the second consecutive month in May on easing input costs brought about by lower commodity prices.
- The wholesale price index (WPI) declined by 3.48 per cent in May, a three-year low, on easing prices of food, fuel and manufactured items. The index has been in negative territory for the second straight month. In April, it was (-) 0.92 per cent.
- This is the lowest WPI inflation print since November 2015, when it was (-) 3.7 per cent.