Wholesale Price Index (WPI)

Third straight month of deflationary trend in India's wholesale prices in June 2020.

Published monthly by the Office of Economic Advisor. Updated until June 2020. (Published on July 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

The wholesale price inflation declined by 1.8% YoY in June, lower than the deflation of 3.2% YoY registered in May 2020. For the third straight month, we are looking at a deflationary trajectory in the wholesale level inflation. Deflation in primary and fuel and power segment aided the deflationary trend at the general WPI level. There was a turn in manufacturing products which saw a rise in June.

Inflation in the manufactured products stood at 0.2% YoY compared to a deflation of 0.4% YoY in May. The restarting of economic activities post easing in lockdown restrictions could have led to an increase in prices over manufacturing products. Out of 23 industries, 13 industries witnessed an increase in prices in June 2020. It is also noteworthy that the inflation in fuel and power category has moderated in June with coal and electricity prices remaining unchanged.

Primary articles with the highest weightage (22.6%) in the WPI basket remained negative at 1.2% YoY, but it was marginally higher than the 2.9% YoY deflation registered in the previous month. On account of the re-imposition of lockdown measures in few parts of the country, disruption in supplies is likely. The re-imposition of lockdown has been on account of increased coronavirus infection cases.

The deflationary situation in the manufacturing sector continues to persist. With retail inflation print rising to 6.09% YoY in June and a weak demand situation, the RBI's monetary policy committee that has already cut interest rates by 115 basis points this year is likely to cut interest rates rates further to support 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: August 13, 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.