- 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.
- 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, Primary Articles and Fuel and Power.
Why in News?
- Inflation in wholesale prices hit 15.1% in April, the highest in the current data series, from 14.5% in March, driven largely by a spike in fuel prices and food items.
- The previous high inflation rate recorded in the current series of the Wholesale Price Index (WPI) with a base year of 2011-12, was 14.9% in November 2021.
- The all-time high level of wholesale price inflation in April was driven by the rise in prices across the board with manufactured products and fuel and power leading the charge.
- The government attributed the high rate of inflation in April, 2022 primarily to the rise in prices of mineral oils, basic metals, crude petroleum & natural gas, food articles, non-food articles, food products and chemicals & chemical products.