Wholesale Price Index
An index tracking prices of goods traded in bulk between businesses, before they reach the retail stage.
Formula
WPI = (Cost of the Wholesale Basket Now / Cost in the Base Period) x 100
Unit
index points
In depth
The WPI covers only goods and excludes services entirely, which is a large omission in an economy where services are the majority of output — this is why India shifted its inflation target to the CPI in 2016. It is heavily weighted toward manufactured products and fuel, making it far more sensitive to global commodity and crude prices than the CPI. The two indices routinely move in opposite directions, and a negative WPI alongside a positive CPI is common. WPI remains useful as a measure of input cost pressure on companies, which is a different question from household inflation.
Worked example
WPI at minus 0.5% while CPI runs at 5.4% is an ordinary combination, not a contradiction. Global commodity prices fell while services and food, which WPI does not fully capture, continued rising.
Illustrative figures, chosen so the arithmetic is easy to follow. Not a live price and not a valuation of any company.
Educational reference only
This entry explains what “Wholesale Price Index” means. It is not investment advice and not a recommendation to buy or sell any security. Any numbers above are illustrative, not live prices, and nothing here predicts price direction or rates a stock. Consider your own circumstances and consult a SEBI-registered investment adviser before acting.