According to government data,wholesale price-based inflation has reached a 2 year low of 2.02% in June,2019.
This decline comes on the back of reduced inflation in the prices of manufactured products as well as a drop in the prices of fuel and power sources.
However,RBI has projected upward in food inflation in the near term due to (a)uncertain monsoon (b)unseasonal spike in vegetable prices (c)crude oil prices (d)financial market volatility and (e)fiscal scenario.
Wholesale Price Inflation(WPI) 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.
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.
Wholesale Price Index is computed by the Office of the Economic Advisor (OEA),Department of Industrial Policy and Promotion,Ministry of Commerce and Industry.