Wholesale Price Index (WPI)
Declared on a monthly basis, the index is calculated on the average rate of change in the wholesale market. The WPI contains 980 commodities, with a base year of 2004-05. The WPI basket comprise manufactured products (65%), primary articles (20%) and fuel & power (15%). Food articles are a part of primary articles, constituting 14% of the overall WPI. Processed foods, part of manufactured products, account for 11% of the WPI.
Commodity Price Index (CPI)
The CPI is declared on a monthly basis. It is a statistical time series value based on the weighted average rate of change in the prices of a set of goods and services purchased by the consumer. The CPI is more comprehensive, catching the inflation value from the end-consumer perspective rather than from a wholesale one.
In India, inflation is measured by movement of the WPI, which is more closely followed than the CPI.
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