Why in the News
Wholesale Price Index (WPI) inflation eased to 9.78% in July 2026 from 9.87% in June, mainly due to lower fuel and power inflation.
What is WPI?
- Measures price changes of goods traded in bulk between businesses.
- Covers only goods, not services.
- Three groups: Primary Articles, Fuel & Power, Manufactured Products.
- Base year: 2011-12.
- Released by the Office of the Economic Adviser, Ministry of Commerce and Industry.
- Weights: Manufactured Products 64.23%, Primary Articles 22.62%, Fuel & Power 13.15%.
July 2026 Trends
- Fuel & Power: 20.05%, down from 27.41%.
- Manufactured Products: 8.29%, up from 7.48%.
- Food Articles: 5.44%, marginally down from 5.49%.
- PPI: Producer Price Index remained at 9.6%.
WPI vs CPI
- WPI: Wholesale prices of goods; excludes services.
- CPI: Retail prices of goods and services; used as India’s inflation-targeting anchor.
- CPI target: 4% with a tolerance band of ±2%.
Why is inflation a concern?
- Imported crude oil shocks
- Food price volatility
- Supply-chain constraints
- Fertiliser import dependence
- Input cost pressures
“[2010] With reference to India, consider the following Statements:
1. The Wholesale Price Index (WPI) in India is available on a monthly basis only
2. As compared to Consumer Price Index for Industrial Workers (CPI (IW)), the WPI gives less weight to food articles.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2.