Wholesale Price Index (WPI) of India

Wholesale price inflation moderates to a 22-month low in May'19.

Published monthly by the Ministry of Commerce and Industry. Updated until May 2019. (Published on June 14, 2019) 
Note: WPI Food Index consists of ‘Food Articles’ from Primary Articles group and ‘Food Product’ from Manufactured Products. Core WPI represents non-food manufacturing.

Recent Data Trend

India's wholesale inflation moderated to a 22-month low and recorded a growth of 2.5% YoY, 0.6% lower than 3.1% YoY recorded in April 2019. A higher base effect can be a reason for the moderation in the wholesale price index in May'19. Though the prices of food articles and non-food articles components increased, the prices of manufacturing products recorded a two and half year moderation.

The primary articles component of WPI (second largest component) increased by 6.2% YoY, 2.4% higher than the corresponding period a year ago. The main reason for increase in prices of primary articles can be attributed to increase in prices of food articles and non-food articles. The food prices rose to a high of 7.9% YoY in May'19 compared to 1.7% YoY in the corresponding period a year ago and 7.4% YoY in April'19. A lower base effect is one of the reasons for a pick-up in food prices. Within WPI, food prices has seen a sustained increase since the last 5 months and prices of pulses, vegetables and onions recorded double-digit growth.

The prices of fuel and power recorded a significant contraction (0.9% YoY) primarily on account of moderation in global crude oil prices. Manufacturing goods ,with a share of 65% within WPI, declined to 1.3% YoY and 11 out of 17 industries recorded a fall in growth rates in May'19.

We are seeing a broad-based increase in inflation of primary articles (especially food articles) at the wholesale and retail level. However, manufactured products may continue to limit the pick-up in wholesale level inflation until announcements on new infrastructure and expenditure plans in the budget take effect. Factors such as monsoons and global crude oil prices may also impact the wholesale inflation.

Brief Overview

Wholesale Price Index (WPI) represents the price of representative commodity basket of 697 items at the wholesale level, i.e. goods traded in bulk and between organizations, not the end consumers. It is a measure of inflation at the wholesale level. The significant components of WPI include Manufactured Products, Primary Articles, Fuel, and Power in the decreasing order of weight-age to the stated elements. The purpose of the WPI is to monitor price movements that reflect supply and demand in industry, manufacturing, and construction. The WPI index helps in analyzing both macroeconomic and microeconomic conditions.

The WPI inflation has remained in the negative zone for the entire year of 2015 owing to the weak global prices of oil. The wholesale prices fell by 5.1% in August 2015, the highest fall of all time.

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. Since 1947 the index is being regularly published. The latest series of WPI uses the base year as 2011-12. For more information, please visit the official website.  

Wholesale Price Index, Sub-group: Manufacturing

Wholesale Price Index, Sub-group: Primary Articles

Wholesale Price Index, Sub-group: Fuel and Power

Next Release Date: July 15, 2019

Wholesale Price Index-Quarterly

Wholesale Price Index-Annual

Note: Here year represent fiscal year. For example 2010 refers to the period April 2010-March 2011, and so on. 
The entire series 1970-2017 is on the same base year (2011-12=100). The data post-2012 is in the base year 2011-12. For data, before 2012, we have used yearly growth rates obtained from a series of the different base year. For example, the index of 2010 (on 2011-12 base year) has been obtained preserving its growth rate (on 2004-05 base year) and using 2011-12 index value as 100 and dividing it by the growth rate for 2010 obtained earlier.