Wholesale Price Index (WPI) of India

Wholesale inflation spikes up to 2.93% YoY in Feb'19 on account of rise in overall food inflation.

Published monthly by the Ministry of Commerce and Industry. Updated until February 2019. (Published on March 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 level inflation measured by Wholesale Price Index (WPI) inched up to 2.93% YoY in Feb'19 as against 2.76% YoY in the previous month. The acceleration was largely driven by a hardening of prices of primary articles especially food articles. Costlier fuel and power basket also contributed to the same.

The wholesale level inflation of primary articles grew by 4.8% YoY, higher than 3.5% YoY in Jan'19. Within the primary articles, prices of food and non-food articles rose by 4.3% YoY and 5.1% YoY respectively. The rise in wholesale level inflation of food articles is primarily due to higher prices of cereal and pulses along with a lower base effect. This is indicative of the waning deflationary trend in the food articles, as it has been the second consecutive month of a positive trend in its prices. The recovery in prices of food articles, if persist in coming months, will certainly help to reduce the agrarian unrest.

Inflation in fuel and power basket also rose to 2.2% YoY compared to 1.8% YoY in the last month on account of higher diesel prices. With Global crude oil prices showing a rising trend since Dec'18 due to ongoing supply cuts led by sanction against Venezuela and Iran, we can expect the prices of fuel and power to rise in coming months.

Core WPI continued to decline and reached an 18-month low of 2.4% YoY in Feb'19, in contrast to core CPI which witnessed a marginal rise in the same month. This suggests that the retailers are not fully passing-on the fall in prices to consumers in the non-food and non-fuel segments.

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: April 14, 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.