Wholesale Price Index (WPI) is an inflation indicator that measures the average change in prices of goods traded in bulk at the wholesale level over time.
Wholesale Price Index (WPI) tracks price movements of goods before they reach the retail market. It reflects changes in prices at the producer or wholesaler level and is widely used to analyze inflation trends, cost pressures, and supply-side price movements in the economy.
WPI typically covers three major groups:
Governments, policymakers, and economists use WPI to monitor inflation, frame economic policies, and understand how price changes at the wholesale level may impact businesses and consumers in the future. A rising WPI indicates increasing wholesale inflation, which can later influence retail prices.
"If the Wholesale Price Index rises from 140 to 147 in a year, it means wholesale prices have increased by 5% during that period, indicating inflation at the wholesale level."