WPI and CPI are measures of changes in price of goods and services in economy. WPI vs CPI: the key difference is that WPI tracks inflation at wholesale market level and CPI tracks inflation at retail level.
WPI is average price changes of goods that are traded in the wholesale market. It is a weekly measure of wholesale price movement of the economy. It includes only the prices of goods and does not include items pertaining to services. In India, WPI is published by the Office of Economic Adviser, Ministry of Commerce and Industry weekly. It has a time lag of two weeks.
There are 697 items are included in the index. These items are further divided into three categories:
The weights of items in WPI are:
Consumer Price Index (CPI) measures the changes over time in general level of prices of goods and services that households acquire for the purpose of consumption. It tracks inflation at retail level. RBI sets the target of CPI for controlling the inflation in its monetary policy. There are four CPI in India for four different set of workers:
In India, CPI (Rural/Urban/Combined) is published by the Central Statistics Office (Ministry of Statistics and Programme Implementation) and CPI (IW/AL) is published by Labour Bureau in the Ministry of Labour and Employment. It is published on monthly basis
The items covered in CPI are divided into eight categories viz. Education, communication, transportation, recreation, apparel, foods and beverages, housing and medical care. The number of items in CPI basket include 448 in rural and 460 in urban
The current base year of CPI is 2012.
The main difference between WPI vs CPI are:
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