WPI inflation at 2-year low in May

  1. According to government data, wholesale price-based inflation has reached a 22-month low of 2.45% in May. The decline has been attributed to falling prices of food articles, fuel and power items.
  2. Wholesale Price Inflation tracks changes in the price of goods in stages before the retail level i.e. goods that are sold in bulk and traded between organizations instead of consumers.
  3. It is measured by the Wholesale Price Index. The index basket of the WPI covers commodities falling under the three major groups namely Primary Articles, Fuel and Power and Manufactured products. It is important to note that WPI does not cover services.
  4. Wholesale Price Index is computed by Office of the Economic Advisor (OEA), Department of Industrial Policy and Promotion, Ministry of Commerce and Industry.

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