Why in the News?
- India’s Wholesale Price Index (WPI) inflation rose to a 38-month high of 3.88% in March 2026, driven by a sharp surge in crude oil prices due to the West Asia conflict.
Key Highlights
- WPI Inflation (March 2026): 3.88%
- WPI Inflation (February 2026): 2.13%
- Highest level in over 3 years
| Feature | Wholesale Price Index (WPI) | Consumer Price Index (CPI) |
| Primary Focus | Prices at the wholesale/producer level. | Prices at the retail/consumer level. |
| Composition | Only Goods. | Both Goods and Services. |
| Who publishes it? | Ministry of Commerce and Industry. | National Statistical Office (NSO). |
| Key Components | Fuel, Power, Manufactured products. | Food, Beverages, Housing, Education, Health. |
| Impact | Reflects business-to-business (B2B) costs. | Reflects the cost of living (B2C). |
| Base Year | Currently 2011-12 (in many regions), but changed the base from 2011-12 to 2022-23 | Base revised from 2012 to 2024 using Household Consumption Expenditure Survey 2023-24 |
| [2020] Consider the following statements: 1.The weightage of food in the Consumer Price Index (CPI) is higher than that in the Wholesale Price Index (WPI). 2.The WPI does not capture changes in the prices of services, which the CPI does. 3.The Reserve Bank of India uses WPI as its key measure of inflation to decide changes in policy rates. Which of the statements given above is/are correct? [A] 1 and 2 only [B] 2 and 3 only [C] 1 and 3 only [D] 1, 2 and 3 |
