What is WPI & CPI?
What is WPI & CPI?
> the wholesale price index (WPI) based inflation rate and. > the consumer price index (CPI) based inflation rate. The former is called the wholesale inflation rate and the latter is called the retail inflation rate. Both WPI and CPI are price indices.
What is WPI finance?
A wholesale price index (WPI) is an index that measures and tracks the changes in the price of goods in the stages before the retail level. This refers to goods that are sold in bulk and traded between entities or businesses (instead of between consumers).
What is a CPI in finance?
The Consumer Price Index (CPI) is a measure of the average change overtime in the prices paid by urban consumers for a market basket of consumer goods and services.
What is CPI WPI and SPI?
Sensitive Price Indicator (SPI) Producer Price Index (PPI) Wholesale Price Index (WPI) Unit values. Measures of core inflation (CPI)
How WPI is calculated?
WPI= (Current Price / Base Period Price) × 100 Suppose, the total price of goods in the current year (2016) is INR 3,500. To calculate the change in prices, we consider 2010 as the Base Year. The total price of goods in the base year is INR 2,000. Now, with the help of this formula, we will calculate the WPI index.
Why is CPI different from WPI?
WPI tracks inflation at the producer level and CPI captures changes in prices levels at the consumer level. WPI does not capture changes in the prices of services, which CPI does. In WPI, more weightage is given to manufactured goods, while in CPI, more weightage is given to food items.
What is WPI today?
WPI inflation rises to 13.11% in February.
WHO releases WPI?
Published by the Office of Economic Adviser, Ministry of Commerce and Industry. It is the most widely used inflation indicator in India. Major criticism for this index is that the general public does not buy products at wholesale price. The base year of All-India WPI has been revised from 2004-05 to 2011-12 in 2017.
Is CPI better high or low?
A lower CPI provides at least two major benefits to the government: Many government payments, such as Social Security and the returns from TIPS, are linked to the level of the CPI. Therefore, a lower CPI translates into lower payments—and lower government expenditures.
What is difference between whole price and Consumer Price Index?
WPI vs CPI – Key Differences WPI is used to measure the average change in price in the sale of goods in bulk quantity by the wholesaler, whereas CPI measures the change in the price in the sale of goods or services in retail or directly to a consumer. WPI is for only goods, whereas CPI is for goods and services.
How is WPI and CPI calculated?
The base year for WPI is 2011-12 while the base year for CPI is 2012. WPI takes into account the change in price of goods only, while CPI takes into account the change in process of both goods and services. In WPI, more weightage is given to manufactured goods, while in CPI, more weightage is given to food items.