UPSC Current Affairs
CPI and WPI
About: The Wholesale Price Index (WPI) and the Consumer Price Index (CPI) are commonly used to monitor inflation. The Wholesale Price Index is a tool for calculating the average variation in prices for goods sold in bulk. On the other hand, the Consumer Price Index measures changes in the overall price level of a group of consumer items.
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About: The Wholesale Price Index (WPI) and the Consumer Price Index (CPI) are commonly used to monitor inflation. The Wholesale Price Index is a tool for calculating the average variation in prices for goods sold in bulk. On the other hand, the Consumer Price Index measures changes in the overall price level of a group of consumer items.
About:
- The Wholesale Price Index (WPI) and the Consumer Price Index (CPI) are commonly used to monitor inflation.
- The Wholesale Price Index is a tool for calculating the average variation in prices for goods sold in bulk.
- On the other hand, the Consumer Price Index measures changes in the overall price level of a group of consumer items.
Wholesale Price Index:
- WPI measures the average change in prices of goods at the wholesale level while CPI calculates the average change in prices of goods and services at the retail level.
- WPI data is published by the Office of Economic Adviser, Ministry of Commerce and Industry, while CPI data is published by the National Statistical Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI).
- The base year for WPI is 2011-12 while the base year for CPI is 2012.
- WPI takes into account the change in price of goods only, while CPI takes into account the change in process of both goods and services.
- In WPI, more weightage is given to manufactured goods, while in CPI, more weightage is given to food items.
Syllabus: Prelims
- Prelims: Key facts, institutions, locations and terminology in the article.
- Mains: Connect the topic with Economy, Polity & Governance.
- Revision: Use the article headings to prepare concise notes and answer-writing points.
Test your understanding
Questions from this article
Prelims practiceWith reference to CPI and WPI, consider the following statements:
- The Wholesale Price Index (WPI) and the Consumer Price Index (CPI) are commonly used to monitor inflation.
- The Wholesale Price Index is a tool for calculating the average variation in prices for goods sold in bulk.
- On the other hand, the Consumer Price Index measures changes in the overall price level of a group of consumer items.
Which of the statements given above are correct?
- 1 and 2 only
- 2 and 3 only
- 1 and 3 only
- 1, 2 and 3
View answer
Answer: (d) 1, 2 and 3. All three statements are drawn from the article.
Mains practiceDiscuss the background, key issues and significance of CPI and WPI for India.
Answer in 250 words.
View answer approach
- About:
- Wholesale Price Index:
- Background and context
- Key facts and institutional framework
- Significance and way forward
Frequently asked questionsFrequently asked questions
Why is Cpi And Wpi in the news?
About: The Wholesale Price Index (WPI) and the Consumer Price Index (CPI) are commonly used to monitor inflation. The Wholesale Price Index is a tool for calculating the average variation in prices for goods sold in bulk.
What are the key facts about Cpi And Wpi?
On the other hand, the Consumer Price Index measures changes in the overall price level of a group of consumer items. Wholesale Price Index: WPI measures the average change in prices of goods at the wholesale level while CPI calculates the average change in prices of goods and services at the retail level. WPI data is published by the Office of Economic Adviser, Ministry of Commerce and Industry, while CPI data is published by the National Statistical Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI).
Why is Cpi And Wpi important for UPSC preparation?
The topic connects current developments with Economy, Polity & Governance and is relevant for both objective revision and analytical answer writing.