What Is Wpi Upsc?

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What is WPI in simple terms?

Definition: Wholesale Price Index (WPI) represents the price of goods at a wholesale stage i.e. goods that are sold in bulk and traded between organizations instead of consumers. WPI is used as a measure of inflation in some economies. Description: WPI is used as an important measure of inflation in India.

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What is the difference between WPI and CPI Upsc?

What is the difference between CPI and WPI? WPI tracks inflation at the producer level and CPI captures changes in prices levels at the consumer level. WPI does not capture changes in the prices of services, which CPI does.

How many items are there in WPI UPSC?

Wholesale Price Index (WPI) is based on the price prevailing in the wholesale markets or the price at which bulk transactions are made. The WPI basket includes 676 (Changed to 697 now) commodities in total- all of these are only goods and whose prices are captured at the wholesale/producer level.

Why is WPI important?

The main uses of WPI are the following: to provide estimates of inflation at the wholesale transaction level for the economy as a whole. This helps in timely intervention by the Government to check inflation in particular, in essential commodities, before the price increase spill over to retail prices.

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Why WPI is used in India?

As of now, WPI is predominantly used for converting GDP/GVA at current prices to the same at constant prices. In fact, the GDP deflator (often argued as the true indicator of inflation), which is defined as a ratio of GDP at current prices to GDP at constant prices multiplied by 100, closely tracks WPI inflation.

Who releases WPI in India?

It is the most widely used inflation indicator in India. It is published by the Office of Economic Advisor (Ministry of Commerce & Industry). The base year for WPI is 2011-12.

Who will calculate WPI in India?

1 The Office of the Economic Adviser in the Department of Industrial Policy and Promotion, Ministry of Commerce & Industry is responsible for compiling WPI and releasing it.

Why is India’s WPI so high?

“High oil prices in the international market have resulted in high and persistent inflation in the manufactured products and fuel & power categories of the WPI,” said a government official, adding that their high weights have resulted in the WPI inflation increasing for May.

Does RBI use WPI or CPI?

The WPI is the main measure of the rate of inflation often used in India. The WPI is available for all commodities, and for major groups, sub-groups and individual commodities.

Why WPI is called headline inflation?

Headline Inflation is the measure of total inflation within an economy. It includes price rise in food, fuel and all other commodities. The inflation rate expressed in Wholesale Price Index (WPI) usually denotes the headline inflation.