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.