Wholesale Price Index

Context:  India’s wholesale prices remained in deflationary mode for the second month with prices falling 3.48%, and all categories reporting a contraction in prices compared with May 2022, when inflation had hit a record high of 16.6%. About Wholesale Price Index:

• Wholesale Price Index (WPI) represents the price of goods at a wholesale stage i.e. goods that are sold in bulk and traded between organisations instead of consumers.
• Released by:  The Economic Advisor in the Ministry of Commerce and Industry.
• Base year: 2011-12
• WPI covers only goods and services are excluded. 
• WPI is primarily used as a GDP deflator. 
• WPI reckons only basic prices and does not include taxes, rebate/trade discounts, transport and other charges.
• Components and weightage in WPI basket:
  1. Primary articles: 20.12 percent
  2. Manufactured products:  64.97 percent
  3. Fuel and power: 14.91 percent

News Source: The Hindu