The Wholesale Price Index (WPI) is an economic indicator that measures the average changes in the prices of a basket of goods and services at the wholesale level. The WPI is commonly used to track inflation in the Indian economy and is published by the Ministry of Commerce and Industry in India.The WPI basket typically includes a wide range of goods and services, such as primary articles, fuel and power, and manufactured products. The basket is designed to reflect the prices of goods and services that are typically bought and sold by wholesalers, rather than by final consumers.To calculate the WPI, a weighted average of the prices of the goods and services in the basket is calculated. The weights are based on the importance of each item in the overall basket, and are updated periodically to reflect changes in the economy.The WPI is a useful tool for policymakers, as it provides a snapshot of the prices of goods and services in the economy and can help to identify trends in inflation. It is also used by economists and analysts to forecast inflation and to make decisions on monetary policy, such as adjusting interest rates.In summary, the Wholesale Price Index (WPI) is a key economic indicator that measures changes in the prices of goods and services at the wholesale level and provides a useful tool for policymakers and economists to monitor inflation and make informed decisions.
