ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -What is the Wholesale Price Index? It measures the changes in the prices of goods sold and traded in bulk by wholesale businesses to other businesses. Published by the Office of Economic Adviser, Ministry of Commerce and Industry. It is the most widely used inflation indicator in India.

Detailed explanation-2: -The WPI is the main measure of the rate of inflation often used in India.

Detailed explanation-3: -Generally, WPI and CPI (Consumer Price Index) are used to calculate the inflation rates. In India, Inflation rates are based on WPI which is released by the Ministry of Commerce and Industry.

Detailed explanation-4: -In India, inflation is primarily measured by two main indices: The Wholesale Price Index (WPI) and Consumer Price Index (CPI), also known as retail inflation. The index numbers used to measure the change in the overall price of goods before they are sold at retail prices constitute the WPI.

Detailed explanation-5: -Average Inflation Rate in India The country’s retail inflation, which is measured by the consumer price index (CPI), dropped to a 1-year low of 5.72% in Dec. 2022 from 5.88% in Nov. 2022.