Context: As per the data released by the Ministry of Commerce and Industry, India’s wholesale inflation fell to a 13-month low of 0.85% in April 2025. It is down from 2.05% in March and 2.38% in February.
The decline in inflation was largely due to a decline in prices in the fuel & power and primary articles segments, although the manufacturing sector continued to show resilience.
Relevance of the Topic: Prelims: Key facts about Wholesale Price Index (WPI).
Wholesale Price Index:
- WPI is an economic indicator that measures inflation at the wholesale level i.e., the average change in price of goods and commodities before they reach the retail or consumer market.
- It reflects price movements of basket of goods, including primary articles (food, oilseeds, minerals), fuel and power, and manufactured products.
- Compiled by: Office of Economic Advisor, Ministry of Commerce and Industry.
- Base year: 2011-12
- Unlike CPI, WPI does not include services. WPI is used to monitor supply-side inflation and is a critical input for industry pricing, taxation and policy making.
WPI Food Index
- Sub-index of WPI. It is a combination of the food articles from the Primary Articles basket, and the food products from the Manufactured Products basket.
Measurement of Inflation in India:
| Criteria | Wholesale Price Index (WPI) | Consumer Price Index (CPI) |
| Level | Measures Inflation at Wholesale level | Measures Inflation at Retail Level |
| Who Calculates? | Office of Economic Advisor, Ministry of Commerce and Industry | National Statistical Office, Ministry of Statistics and programme Implementation |
| Base year | 2011-12 | 2012 |
| Categories | Primary Articles, Manufactured products, Fuel and Power | Food and beverages, Tobacco and Intoxicants, Clothing and Footwear,Housing,Fuel,Miscellaneous- Education, Healthcare, Transportation etc. |
| Highest Weightage | Manufactured products > Primary Articles > Fuel and Power | Food and Beverages |
| Impact of increase in Food items | Less impact on WPI as compared to CPI, since WPI provides higher weightage to manufactured products and lower weightage to Food items. | Larger impact on CPI as compared to WPI since it gives more weightage to food products. |
| Services included | No | Yes |
| Indirect Taxes Included? | No | Yes |
| Targeted by RBI? | No | Yes. The RBI is required to maintain CPI rate of inflation of 4% with a deviation of 2%. |