Inflation at the wholesale level slowed in November due to subdued prices, with the Wholesale Price Index registering a growth of 3.15 per cent, its slowest rate since June 2016.
WPI registered a growth rate of 3.4 per cent in October, and the index has now witnessed a slowing growth rate for the third consecutive month as of November.
- The easing in wholesale prices comes at a time when even retail price inflation has been cooling off, with the Consumer Price Index witnessing a two-year low growth rate of 3.6 per cent in November.
Wholesale Price Index:
The Wholesale Price Index (WPI) is the price of a representative basket of wholesale goods. Some countries use WPI changes as a central measure of inflation.But now India has adopted new CPI to measure inflation. However, United States now report a producer price index instead.
- The Wholesale Price Index or WPI is “the price of a representative basket of wholesale goods”. Some countries use the changes in this index to measure inflation in their economies, in particular India – The Indian WPI figure was released weekly on every Thursday . But since 2009 it has been made monthly. It also influences stock and fixed price markets. The Wholesale Price Index focuses on the price of goods traded between corporations, rather than goods bought by consumers, which is measured by the Consumer Price Index. The purpose of the WPI is to monitor price movements that reflect supply and demand in industry, manufacturing and construction. This helps in analyzing both macroeconomic and microeconomic