Wholesale Price Index (WPI)

India's wholesale inflation falls to the lowest in 25 months to 1.08% YoY in July 2019.

Published monthly by the Ministry of Commerce and Industry. Updated until July 2019. (Published on August 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

In July 2019, the wholesale level inflation, as measured by Wholesale Price Index (WPI) plunged to a 2-year low of 1.08% year-on-year (YoY) from 2.0% YoY growth in June. The inflation during July'19 was much lower than 5.27% YoY growth witnessed in July'18. At both retail and wholesale level, inflation in the economy eased in July 2019. This drop in the wholesale inflation was on account of lower prices of manufacturing products and deflation seen in the fuel and power group.

The falling inflation at the wholesale level was led by deflation in the fuel and power group for the last two months. It registered deflation of 3.6% YoY in July'19 compared to 2.2% YoY witnessed in the previous month. A higher base effect and decline in crude oil prices with increased uncertainty over global economic slowdown can be pointed out as the main reasons.

Inflation in manufactured products (the highest weightage in the index) witnessed a three-year low growth of 0.3% YoY in July as against 4.5% YoY inflation growth seen in the corresponding period last year. Eight out of seventeen industries registered negative inflation growth within the manufacturing sector.

The decline in inflation in pulses, vegetables, milk, and eggs & meat led to an overall softening of food article inflation. But, higher inflation in fruits and cereals limited the further easing of food prices.

Going forward, we believe, there could be upward pressure on prices of primary articles given the flood situation in several states. However, with the likelihood of lower oil prices due to global economic slowdown and weak prices of manufacturing products, we may see the wholesale inflation to remain subdued for a few more months in the future.

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: September 16, 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.