What are the differences between Wholesale Price Index & Con - Study24x7
Social learning Network
study24x7

Default error msg

Login

New to Study24x7 ? Join Now
Already have an account? Login
googlePlay app_img

What are the differences between Wholesale Price Index & Consumer Price Index?

Published on 19 June 2020
study24x7
Vipin Gangwar
6 min read 5 views
Published on 19 June 2020
Share this article
Copy Link Link Copied
NAT Banner

The difference in CPI and WPI: Wholesale Price Index (WPI) and Consumer Price Index (CPI) are two widely used indexes to calculate the inflation in the country. India uses the WPI index to calculate inflation while most of the countries use CPI for the same.


Difference CPI & WPIDifference CPI & WPI


Meaning of Inflation:


Inflation is a market situation in which the price of goods and services increases consistently over a period of time. So inflation reduces the value of money hence too much money chases too few goods.

There are various methods to calculate inflation i.e. Wholesale Price Index (WPI), Consumer Price Index (CPI), Producer Price Index (PPI), Commodity Price Index, Cost of Living Index, Capital Goods Price Index and GDP Deflator. But WPI and CPI are widely used indexes to calculate inflation all over the world.


This article is explaining the differences between the WPI and CPI.


What is the Consumer Price Index (CPI)?

Consumer Price Index (CPI) is a price index that represents the average price of a basket of goods over time. CPI calculates the average price paid by the consumer to the shopkeepers.

Education, communication, transportation, recreation, apparel, foods and beverages, housing and medical care are the 8 groups for which the CPI is measured.

(A retailer)

What Is Wholesale Price Index (WPI)?

Wholesale Price Index (WPI) is an indicator of price changes in the wholesale market. WPI calculates the price paid by the manufacturers and wholesalers in the market. WPI measures the changes in commodity price at selected stages before goods reach the retail level.

Difference between WPI and CPI is as follows;

Basis For Comparison
Wholesale Price Index (WPI)
Consumer Price Index (CPI)
 Meaning
 WPI, amounts to the average change in prices of commodities at the wholesale level
 CPI, indicates the average change in the prices of commodities, at the retail level.
 Published by
 Office of Economic Advisor (Ministry of Commerce & Industry)
 Central Statistics Office (Ministry of Statistics and Programme Implementation)
 Measures prices of
 Goods only
 Goods and Services both
 Measurement of Inflation
 The first stage of the transaction
 The final stage of the transaction
 Prices paid by
 Manufacturers and wholesalers
 Consumers
 How many items covered
697 (Primary, fuel & power and manufactured products)
 448(Rural Basket)
 460 (Urban Basket)
 What type of items covered
 Manufacturing inputs and intermediate goods like minerals, machinery basic metals etc.
 Education, communication, transportation, recreation, apparel, foods and beverages, housing and medical care
 Base year
 2011-12
 2012
 Used by
 Only a few countries including India
 157 countries
 Data released on
 Primary articles, fuel, and power (Weekly basis) &
overall (monthly basis since 2012)
 Monthly basis

So from the above table, it must be clear that what are the differences between the CPI & WPI indexes. Here it is worth mentioning that CPI is a worldwide accepted mode of calculating the inflation as compared to the WPI

SSC Banking UPSC
Like| 4 Comment
study24x7
Write a comment...
Trending Articles

Best Study timetable for class 8th students

By CBSE CLASS 8

HOW TO WRITE CERTIFICATE SECTION FOR CLASS XII SCHOOL PROJE...

By Edubabble LLP

Best topic ideas for class 7 Science projects

By CBSE CLASS 7

The best daily routine for class 8 students

By CBSE CLASS 8
Featured Courses
Related Posts

Check these related articles on Study24x7

Is NCERT enough for Class 12th Arts Students?
7 min read 6 views

The Central Board of Secondary Education (CBSE) is a national board that conducts board examinations for class 10th and 12th. Both the boards are impo

K-12-Arts

13 followers

Stepping into the Future: Exploring the Metaverse NFT Marketplace
14 min read 4 views

The world of NFTs has taken the art and collectible industry by storm. From digital art to memes, NFTs have become a medium for creators and collector

metaverse development

How to Prepare for Essay Paper in UPSC 2021?
6 min read 6 views

UPSC is the most prestigious exam that aspirants give in order to become an IAS. The level of this exam is quite tough and not many aspirants clear th

UPSC & State PSC

1008 followers

Permafrost
7 min read 4 views

Permafrost is any ground that remains completely frozen—32°F (0°C) or colder—for at least two years straight. These permanently frozen grounds are mos

Curious Mind

298 followers

How to crack SSC CGL 2020 the perfect way?
6 min read 30 views

This year, let us conquer the tower of success and crack the SSC CGL 2020 the perfect way with rainbow colors. Many of the students start to have a ne

The world of media and journal

10 followers

SSC CGL Previous Year Question Paper 29 August 2016 - English language & Comprehension
6 min read 3 views

Previous year question paper will help you to get some ideas about the examination and eventually it will help you in SSC CGL 2020 Exam Questi

SSC Preparation Strategies & S

1540 followers

SSC CHSL 2020 Notification
7 min read 1 views

Staff Selection Commission (SSC) is one of the most renowned Government organizations to conduct large scale exams in order to recruit candidates for

SSC Preparation Strategies & S

1540 followers

2020-21 IBPS Exam Calendar Declared: Check Exam Dates Schedule of IBPS CLERK/PO/RRB/SO Recruitment
7 min read 3 views

2020-21 Tentative exam calendar has been released by the Institute of Banking Personnel Selection (IBPS) on @ibps.in. Here you can download the PDF of

Bankers Setu

23 followers

Share this article
Copy Link Link Copied