India Wholesale Price Index y/y

The Wholesale Price Index (WPI) y/y reflects a change in wholesale prices for goods and services in the reported month compared to the same month a year ago. The index is calculated monthly to measure inflation.

Currently, the consumer basket includes 697 goods and services. The basket is divided into three groups: Primary Articles (food, minerals, crude oil and natural gas), Fuel and Power (coal, mineral oil, energy) and Manufactured Products. Different weights are given to these groups, reflecting their importance for the Indian economy. These are 22.62, 13.15 and 64.23 respectively.

The index deals with actual prices which wholesale buyers pay during the transaction. Source data is collected from different resource, including ministries and departments, as well as public and private companies. Components are calculated relative to a reference period, which is currently set for 2011-2012.

The index is considered a leading indicator of consumer inflation, because changes in wholesale prices lead to changes in retail prices received by end consumers. Also, various agencies may use the information on changes in wholesale prices for indexation and revision of payments. The rising index value indicates a near-term increase in retail prices and in consumer spending, which may have a positive impact on Indian rupee quotes.