What is Wholesale Price Index (WPI)?

What is Wholesale Price Index?

As the name suggests, it should have something to do with the price and the wholesale goods. Also, as it says 'index', it must be a comparative number.

So lets understand it. Wholesale Price Index is the price of a group of wholesale products. It is compared against a benchmark year.

In India 2005 is taken as the benchmark year and the value for it is fixed at 100.

Here is a chart depicting the Wholesale Price Index (WPI) for India across the years.

The WPI in India contains Primary Articles, Fuel and Power, and Manufactured Goods. The weight of primary articles is approximately 20%, weight of fuel and power is approximately 15%, and the weight of manufactured goods is roughly 65%.