Wholesale Price Index (WPI) of India

Fuel and manufacturing soften India's wholesale price inflation rate to 2% YoY in June 2019.

Published monthly by the Ministry of Commerce and Industry. Updated until June 2019. (Published on July 15, 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

The Wholesale Price Index (WPI) inflation continued to ease, reaching a near-two-year low of 2% year-on-year (YoY) in June 2019 from 2.5% YoY in the previous month. The slowdown in inflation comes in contrast to trend in retail inflation, which rose to 8-month high in June 2019. The slowdown in inflation was brought about by a fall in manufacturing, deflation in fuel and power and a decline in food inflation. There has been a persistent decline in fuel and power (LPG, petrol and diesel) prices in the last 6-7 months. This segment registered deflation at -2.2% YoY in June'19 for the first time since October 2016. The fall in crude oil prices in the global market and a higher base effect have helped keep fuel and power prices at a low level.

The manufacturing products which makes up for more than 64% of the WPI index, recorded a fall in inflation to a 34-month low of 0.9% YoY in June 2019, from 1.3% YoY in May 2019. Basic metals (highest weightage within the manufacturing segment) registered a deflation of 3.7% YoY for the second consecutive month, along with five other industries within the manufacturing segment.

Apart from the tepid growth seen in the manufacturing segment, WPI food index moderated to 5% YoY in June 2019 compared to 5.1% YoY growth seen in May 2019. Food articles inflation stood at 7% YoY the same as a month ago level, but higher than 1.9% YoY in June 2018. Prices of vegetables (24.8% YoY) and potato (-24.3% YoY) moderated in June 2019. The inflation in the primary articles rose to 6.7% YoY higher than 6.2% YoY inflation registered a month ago, primarily on account of rise in prices of minerals (28.2% YoY). However, the rise in inflation in primary articles saw a partial offset due to moderation in prices of food and non-food articles.

The WPI inflation in the first quarter (April-June 2019) has declined to a 6-quarter low of 2.2% YoY.

It can be pointed out that in the coming months there could be pressure on wholesale level food prices from uncertain monsoons. An increase in cess on petrol and diesel prices could also have an impact on domestic fuel prices though global crude oil prices are under control.

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: August 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.