Glossary term
Wholesale Price Index (WPI): Meaning and Definition
Reviewed and approved by Dr. Anamika ShrivastavaPublished Last updated
The Wholesale Price Index (WPI) measures the change in the average prices of goods traded in bulk at the wholesale stage. It covers primary articles, fuel and power, and manufactured products, but not services, and does not refer to any consumer group. It is compiled in India by the Office of the Economic Adviser.
In more detail
The WPI follows prices before goods reach consumers, so changes in costs of raw materials and fuel show up in it early. It covers goods only, not services, and its groups are primary articles, fuel and power, and manufactured products. It is compiled by the Office of the Economic Adviser.
Example
A WPI of 125 against a base of 100 means wholesale prices of the covered goods are 25 per cent above the base year.
Key points
- Covers goods only, not services.
- No reference consumer group.
- Compiled by the Office of the Economic Adviser, DPIIT.
Common mistake
Using the WPI to say what households pay. Use the CPI for that.
Related terms
Where it is explained
This term is explained in Class 11 Statistics Chapter 7: Index Numbers.