Wholesale Price Index (WPI) 2024 Latest Data of Major Commodities

Wholesale Price Index (WPI) 2024 Latest Data for Major Commodities

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

The Wholesale Food Index rose at an eight-month high pace of 5.5% in April, compared to 4.65% in March.

Food Price Inflation

Inflation in primary food articles jumped to 7.74% in April, up from 6.88% in March.
Despite a slight easing in cereals and pulses inflation to 8.7% and 16.6% respectively, vegetable price gains accelerated to 23.6% from 19.5% in March.
Potatoes and onions experienced sharp inflation surges, reaching 72% and 59.8% respectively, up from 53% and 57% in March.
Paddy prices increased by over 12%.

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 (OEA), Ministry of Commerce and Industry, Government of India. The WPI includes prices of various commodities like primary articles, fuel and power, and manufactured products. The base year of All-India WPI has been revised from 2004-05 to 2011-12 in 2017.

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:

Major Groups	Weightage	Articles
Primary Articles	22.6%	Food Articles: Cereals, Paddy, Wheat, Pulses, Vegetables, Potato, Onion, Fruits, Milk, Eggs, Meat & Fish Non-Food Articles: Oil Seeds Minerals Crude Petroleum
Fuel & Power	13.2%	LPG, Petrol, High-Speed Diesel
Manufactured Products	64.2%	Manufacture of Food Products: Vegetable And Animal Oils and Fats Manufacture of Beverages, Manufacture of Tobacco Products, Wearing Apparel, Pharmaceuticals, Medicinal Chemical and Botanical Products, and other Non-Metallic Mineral Products etc.

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.