|
Consumer Price Index (CPI) |
Wholesale Price Index (WPI) |
| Definition |
Measures the change in retail prices of goods and services consumed by households |
Measures the change in wholesale prices of goods traded between businesses |
| Compiled By |
National Statistical Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI) |
Office of Economic Adviser, Ministry of Commerce and Industry |
| Base Year |
2012 (CPI-Industrial Workers has 2016 as base year) |
2011–12 |
| Coverage |
Goods and Services |
Only Goods |
| Data Collection |
Prices from 1,181 villages & 1,114 urban markets across India |
Prices collected from wholesale markets, factories, and mandis |
| Purpose/Use |
Measures retail inflation, used for the RBI’s inflation targeting and monetary policy decisions |
Measures producer-level inflation, used as a GDP deflator |
| Users |
Consumers, RBI, Government (for social welfare schemes like DA/DR) |
Policymakers, manufacturers, and financial markets |
| Publication Frequency |
Monthly |
Monthly |
| Number of Items |
299 items |
697 items |
| Components |
– Food & Beverages (45%)
– Housing (10%)
– Fuel & Light (6.8%)
– Miscellaneous (services, etc.) (28.3%)
– Clothing & Footwear (6.5%)
– Pan, Tobacco & Intoxicants (2.4%) |
– Primary Articles (22.6%)
– Fuel & Power (13.2%)
– Manufactured Products (64.2%) |
| Weight of Food Items |
High (~45%) |
Lower (~24.4%) |
| Impact on Economy |
Direct impact on consumer purchasing power and cost of living |
Indicates trends in production costs and supply chain |
| Volatility |
More volatile due to food and fuel price changes |
Less volatile due to base price considerations |
| Use in Policy |
Directly used by RBI for inflation targeting (e.g., 4% CPI target) |
Used for GDP deflation, price policy formation |
| Criticism |
May not reflect production-side price pressures |
Does not capture consumer-level inflation or services |
| Inflation Indicator |
Preferred indicator for common people |
More relevant to manufacturers and wholesale traders |