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New Delhi: WPI Index in India – The Central government has announced the Wholesale Price Index (WPI). The rate of inflation, based on monthly WPI, stood at 4.17 per cent (provisional) for February 2021 (over February 2020) as compared to 2.26 per cent during the corresponding month of the previous year, stated the Central Government of India. The Wholesale Price Index or WPI, is the measurement of the changes in the prices of goods sold and traded. The selling and trade have to be in bulk by wholesale businesses to other businesses. While the Consumer Price Index (CPI) tracks the prices of goods and services bought by consumers. If we simplify the WPI, it denotes that the WPI indicates prices at the factory gate before they enter the retail level.
The WPI figures the demand and supply dynamics in manufacturing, industry, and construction. The Ministry of Commerce and Industry releases the figures of the WPI. If the WPI numbers go up, these suggest that there is inflation and there is pressure on the country’s economy. The monthly data keeps a tab on the wholesale inflammation in the economy.
Prices of minerals increased by 9.4 per cent, crude petroleum and natural gas by 6.5 per cent and food articles by 0.51 per cent month-on-month. However, prices of non-food articles declined by 0.51 per cent. The index for fuel and power with a weightage of 13.15 per cent increased by 4.51 per cent to 104.2 in February from 99.7 in January. Prices of mineral oils rose by 8.88 per cent but prices of electricity fell by 0.43 per cent. Coal prices remain unchanged. The index for manufactured products with a weightage of 64.23 per cent increased by 0.64 per cent to 125.7 in February from 124.9 in January, as per an ANI report.
A total of 17 groups that witnessed an increase in prices are manufacture of other manufacturing; furniture; other transport equipment; motor vehicles, trailers and semi-trailers; machinery and equipment; computer, electronic and optical products; fabricated metal products, except machinery and equipment; other non-metallic mineral products; rubber and plastics products; chemicals and chemical products; printing and reproduction of recorded media; paper and paper products; wood and of products of wood and cork; textiles; tobacco products; beverages; and food products, the ANI report said.
On the other hand, five groups that witnessed a decline in prices are the manufacture of electrical equipment; basic metals; pharmaceuticals, medicinal chemical and botanical products; leather and related products; and wearing apparel. The WPI food index consisting of food articles from the primary articles group and food products from the manufactured products group increased from 151.8 in January to 153 in February. The rate of inflation based on the WPI food index increased from negative 0.26 per cent to 3.31 per cent, according to ANI.
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