What is WPI and CPI Inflation? Difference Between WPI and CPI | INDmoney Classroom #11
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What is WPI and CPI Inflation?
The wholesale Price Index (WPI) measures the increase in the wholesale prices of various goods produced while the Consumer Price Index (CPI) measures the increase in the retail prices of goods and services consumed by people.
What is the difference between WPI and CPI?
The manufactured goods basket has the highest weight (over 64%) in the WPI inflation index whereas the foods and beverages basket has the highest weight (over 45%) in the CPI inflation index. In WPI, weights are allocated according to the total value of goods produced whereas in CPI weights are allocated on the basis of the total value of goods and services consumed by people in the economy.
Who releases the WPI and CPI inflation data?
The Office of Economic Advisor, Ministry of Commerce and Industry releases the WPI inflation data while CPI inflation data is released by National Statistical Office (NSO)
Which index does RBI use for its monetary policy?
From 2016 onwards, RBI started using the CPI index to set its monetary policy.