News: Inflation in India’s wholesale prices hiked up to 1.84% in September from 1.31% in August, with food prices surging to a two-year high of 9.5% from August’s 10- month low of 3.3%.
1. Wholesale Price Index (WPI): It is an economic indicator that captures the changes in the prices of goods at the wholesale level, before goods reach the retail market.
2. Three major groups of WPI include: A) Primary Articles (Weight 22.62%) B) Fuel & Power (Weight 13.15%) C) Manufactured Products (Weight 64.23%)
3. WPI uses 2011-12 as base year.
4. It is released by Office of Economic Adviser, Dept. of Promotion of Industry and Internal Trade, Ministry of Commerce and Industry.
5. A major limitation of WPI is that it does not consider the prices of the services.
6. Other indices used to measure inflation include Consumer Price Index and GDP Deflator.
