Q. Consider the following statements regarding the Wholesale Price Index (WPI):
1.It is a monthly price index released by the National Statistical Office.
2.Services sector is not covered under the WPI.
3.Manufactured Products has highest weightage in the WPI.
Which of the statements given above is/are correct?
Answer: B
Notes:
- Statement 1 is incorrect: Wholesale Price Index (WPI) measures the average change in the prices of commodities for bulk sale at the level of early stage of transactions. It is released by Office of the Economic Adviser on 14th of every month (or next working day) with a time lag of two weeks of the reference month and compiled with data received from institutional sources and selected manufacturing units across the country.
- Statement 2 is correct: The Wholesale Price Index (WPI) is an index covering prices of products/commodities only pertaining to four sectors comprising agriculture, mining, manufacturing and electricity. The other sectors of GDP, in particular, services sector are not covered under WPI.
- Statement 3 is correct: The weight of manufactured products is highest in WPI (2004-05) at 64.2%. The weight of the Primary Article is to 22.6% and the weight of Fuel & Power is 13.2%.
