CrackitToday App

WPI Inflation Rate

WPI Inflation Rate:

The WPI inflation has fallen into negative for the first time since July 2020.

  • According to data released by the Ministry of Commerce and Industry, INFLATION RATE based on Wholesale Price Index (WPI) fell to a near three-year low of (-) 0.92 % in April, slipping into negative territory for the first time in 33 months.
  • A high base effect along with moderation in global commodity prices reflected in easing of food, fuel and other input costs.
  • The decline in the WPI inflation rate in April 2023 was primarily contributed by fall in prices of basic metals, food products, mineral oils, textiles, non-food articles etc.

Wholesale Price Index (WPI):

  • Wholesale Price Index (WPI) represents the price of goods at a wholesale stage i.e. goods that are sold in bulk and traded between organizations instead of consumers.
  • The index has a total of 697 items, including Primary Articles (117), fuel and power (16), and Manufactured Products (564).
  • The percentage increase in WPI over a year gives the rate of inflation for that year.
  • Currently, the base year of WPI is 2011-12.
  • WPI is used as an important measure of inflation in India.