Wholesale Price Index (WPI) Latest Data in 2024

WPI represents the change in prices of commodities at the wholesale level. Read all about Wholesale Price Index its importance, Formula and also Difference between WPI and CPI.

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Wholesale Price Index Latest Data in 2024

Wholesale price inflation rose to a 3-month high of 0.53% in March 2024, compared to 0.2% in February 2024.

Aspect	Details
Food Price Spike	The increase was driven by a rise in the food price index (4.65%), particularly: Cereals (9.04%): Highest 12-month increase Paddy (11.7%) Potato (53%) Onions (57%)
Pulses & Vegetables Remain High	Inflation in pulses (17.2%) and vegetables (19.5%) stayed elevated.
Fuel & Manufactured Goods Still Deflating	Prices of fuel and manufactured products continued to decline, though at a slower rate (around -0.8% each).
First Monthly Increase in 4 Months	Month-on-month, WPI rose 0.4% (first increase since November 2023).
Mixed Picture Within Food	Eggs, meat, and fish prices decreased (1.86%). Milk inflation eased (4.7%) but wheat prices rose sharply (7.43%).
Full Year Deflation	Despite the March rise, wholesale prices remained negative for the entire year (average -0.7%).
Concerns for the Future	Rising international commodity prices Potential increase in crude oil prices Impact of heatwaves on electricity demand Continued vegetable inflation

Wholesale Price Index (WPI)

The Wholesale Price Index (WPI) is an index that measures and tracks the changes in the prices of goods sold in bulk and at the wholesale level in India. It is calculated by the Office of Economic Adviser, Ministry of Commerce and Industry, Government of India. The WPI includes prices of various commodities like primary articles, fuel and power, and manufactured products.

Wholesale Price Index Formula

The formula for calculating the Wholesale Price Index (WPI) in India is as follows:

WPI = (Total value of the basket of goods and services at current prices / Total value of the basket of goods and services at base year prices) x 100

The basket of goods and services used in the calculation of the WPI is reviewed periodically to ensure that it reflects the changing pattern of trade. The base year for the WPI in India is 2011-12.

Wholesale Price Index Commodities for Calculation

The WPI is calculated for three major groups of commodities:

Primary Articles: These include food articles, non-food articles, minerals, crude petroleum, and natural gas.
Fuel and Power: This includes coal, electricity, and mineral oils.
Manufactured Products: This includes food products, textiles, chemicals, basic metals, machinery and equipment, and transport equipment.

The weights assigned to each of these three groups of commodities are revised periodically to reflect the changing pattern of trade.

WPI Calculation in India

The Wholesale Price Index (WPI) in India is calculated by the Office of Economic Adviser, Ministry of Commerce and Industry, Government of India. The index measures the changes in the prices of goods sold in bulk and at the wholesale level in India. The calculation of the WPI involves the following steps:

Selection of the Basket of Goods: The basket of goods and services included in the WPI is selected based on their importance in the economy. The basket of goods is divided into three major groups: primary articles, fuel and power, and manufactured products.
Selection of Base Year: The base year for the WPI in India is 2011-12.
Collection of Price Data: The prices of the selected goods and services are collected from wholesale markets across the country. The price data is collected on a weekly basis.
Computation of Weights: The weights assigned to each commodity in the basket of goods and services are determined based on their relative importance in the economy.
Calculation of Price Indices: The price indices for each commodity in the basket are calculated based on the price data collected.
Calculation of WPI: The WPI is calculated by aggregating the price indices of all commodities in the basket, using the weights assigned to each commodity.

The formula for calculating the Wholesale Price Index (WPI) in India is mentioned above. The WPI is calculated every week and is used as a key indicator of inflation in the Indian economy.

Difference Between WPI and CPI

Here’s a table highlighting the key differences between the Wholesale Price Index (WPI) and Consumer Price Index (CPI):

Features	Consumer Price Index (CPI)	Wholesale Price Index (WPI)
Definition	Measures the change in prices of goods and services consumed by households.	Measures the change in prices of goods sold in bulk by producers and wholesalers.
Coverage	Covers both urban and rural areas.	Covers only goods sold in bulk in the primary and wholesale markets.
Computation	Based on a fixed basket of goods and services consumed by households.	Based on a fixed basket of goods sold in bulk by producers and wholesalers.
Weightage	Weightage assigned to various categories based on the consumption pattern of households.	Weightage assigned to various categories based on the value of production.
Inflation	Reflects the price changes at the retail level.	Reflects the price changes at the wholesale level.
Purpose	Used to measure inflation, calculate Cost of Living Index, and adjust salaries, wages, pensions, and government subsidies.	Used to measure inflation in the production sector, calculate Producer Price Index, and adjust prices of goods and services sold by producers and wholesalers.

Base Year for WPI

The base year for the Wholesale Price Index (WPI) in India is 2011-12. The base year is the year against which the changes in the prices of goods and services are compared to determine the level of inflation. In other words, the WPI for each year is calculated about the prices prevailing in the base year.

The base year is periodically revised to ensure that the WPI reflects the changing pattern of trade and consumption. The previous base year for the WPI in India was 2004-05, and it was revised to 2011-12 in May 2017. The revision of the base year is done to ensure that the weights assigned to different commodities in the basket of goods and services reflect the current consumption pattern and the relative importance of different commodities in the economy.

It is important to note that the base year is not fixed and can be revised periodically to ensure that the WPI reflects the current consumption pattern and the relative importance of different commodities in the economy.

Wholesale Price Index UPSC

The Wholesale Price Index (WPI) is an important topic for the UPSC (Union Public Service Commission) exam as it is included in the UPSC syllabus under the economics section. The WPI is an index that measures the changes in the prices of goods sold in bulk and at the wholesale level in India. It is an important indicator of inflation in the Indian economy and is closely monitored by policymakers.

Aspirants preparing for the UPSC exam should have a clear understanding of the WPI and its significance in the Indian economy. Questions related to the WPI can be asked in both the prelims and mains examination of the UPSC.

Aspirants can prepare for the economics section of the UPSC Syllabus by taking UPSC Online Coaching and practising UPSC Mock Test. This will help them to stay updated with the latest developments in the Indian economy and gain a competitive edge over other aspirants.

Other Important Articles
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GDP of Indian States	Finance Ministers of India List
Commercial Banks	Basel Norms

Wholesale Price Index FAQs

What is meant by Wholesale Price Index?

Wholesale Price Index (WPI) measures the changes in prices of goods sold in bulk and at the wholesale level.

What is the difference between CPI and WPI?

CPI measures changes in prices of goods and services at the retail level, while WPI measures changes in prices of goods sold in bulk and at the wholesale level.