Wholesale Price Index (WPI)

Even WPI at 8-month high in January presents a worrying figure for the economy.

Published monthly by the Ministry of Commerce and Industry. Updated until January 2020. (Published on February 14, 2020) 
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 WPI inflation rose to 8 months high of 3.1% YoY in January 2020. It is the third consecutive month of rise seen at the wholesale level prices and is in line with the rise in CPI inflation, which has breached the RBI's tolerance level for the second consecutive month in January. The rise was primarily fuelled by the increase in fuel & power and manufactured product prices.
The inflation in fuel & power jumped to 3.4% YoY, entering into positive territory after seeing a persistent disinflation since June 2019. It was mainly due to geopolitical tensions in the middle east. Even inflation in manufactured products entered in positive territory after four months, rising to 0.3% YoY in January.
WPI food inflation, which was the primary reason behind the rise in WPI inflation in the past two months, has softened by one percentage point to 10.1% YoY in January. A moderation in WPI food inflation is mainly due to the fall in prices of vegetables, in particular onions, the inflation in which has fallen to 293.4% YoY in January from 455.8% YoY in the last month.

Core WPI, on the other hand, despite registering an improvementt from -1.5% YoY in December 2019 to -1% YoY in January, continues to display a disinflationary trend for the sixth consecutive month. Muted core WPI inflation continues to cite persistent weak demand in the economy.

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: March 16, 2020

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.