CPI and WPI
About:
- The Wholesale Price Index (WPI) and the Consumer Price Index (CPI) are commonly used to monitor inflation.
- The Wholesale Price Index is a tool for calculating the average variation in prices for goods sold in bulk.
- On the other hand, the Consumer Price Index measures changes in the overall price level of a group of consumer items.
Wholesale Price Index:
- WPI measures the average change in prices of goods at the wholesale level while CPI calculates the average change in prices of goods and services at the retail level.
- WPI data is published by the Office of Economic Adviser, Ministry of Commerce and Industry, while CPI data is published by the National Statistical Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI).
- The base year for WPI is 2011-12 while the base year for CPI is 2012.
- WPI takes into account the change in price of goods only, while CPI takes into account the change in process of both goods and services.
- In WPI, more weightage is given to manufactured goods, while in CPI, more weightage is given to food items.
Syllabus: Prelims
