Context:
The WPI-based inflation has come down to 1.89% in November 2024 as per the latest data released by the Office of Economic Adviser (OEA) in the Ministry of Commerce and Industry.
More on the News
- The Wholesale Price Index (WPI)-based inflation eased to a three-month low of 1.89% in November 2024, as against 2.36% in October.
- This fall in WPI inflation is caused by a reduction in prices of food items, which moderated to 8.63% in November 2024 compared to 13.54% in October 2024.
- However, the WPI still remains high compared to November 2023, when it was 0.39%.
- The fuel and power category saw a further deflation of 5.83% in November, compared to 5.79% in October.
- In the manufactured products category, the inflation increased to 2% in November from 1.50% in October.
Wholesale Price Index (WPI)
WPI measures change in the overall price of goods before they are sold at retail.
It is published by the Office of Economic Adviser, Department for Promotion of Industry and Internal Trade, Ministry of Commerce and Industry.
The current base year for calculating WPI is 2011-12.
The groups that come under WPI are:
- Primary Articles: Includes Food Articles like cereals, vegetables, eggs, and meat; Non-Food Articles like Oil Seeds; Minerals; and Crude Petroleum & Natural gas.
- Fuel & Power: Includes Liquefied petroleum gas (LPG); Petrol; and High-Speed Diesel (HSD).
- Manufactured Products: Comprise an assortment of products like Vegetable & Animal Oils & Fats; Tobacco Products; Textiles; Paper and Paper Products; Pharmaceuticals, Medicinal Chemical and Botanical Products; etc.
Difference between Wholesale Price Index (WPI) and Consumer Price Index (CPI)
| WPI | CPI |
| · Tracks inflation at the producer level.· Components: Primary Articles; Fuel & Power; and Manufactured Products.· Compiled by the Office of Economic Adviser, DPIIT.· Dominated by the prices of manufactured goods (64.33%)· Not consider prices of services. | · Tracks inflation at the consumer level.· Components: Food & beverages; Pan, tobacco & intoxicants; Clothing & footwear; Housing; Fuel & light; and Miscellaneous (services).· Compiled by the National Statistical Office (NSO), MoSPI.· Dominated by the prices of food and beverages (45.86%)· Includes prices of services. |