How do I find my WPI?

How do I find my WPI?

WPI= (Current Price / Base Period Price) × 100 Suppose, the total price of goods in the current year (2016) is INR 3,500. To calculate the change in prices, we consider 2010 as the Base Year. The total price of goods in the base year is INR 2,000.

WHO releases WPI index?

WPI data is published by the Office of Economic Adviser, Ministry of Commerce and Industry, while CPI data is published by the National Statistical Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI). The base year for WPI is 2011-12 while the base year for CPI is 2012.

What is General Wholesale Price Index?

The general wholesale price index (GWPI) is an indicator used to measure the changes in the price levels of commodities that flow into the wholesale trade intermediaries. Wholesale price refers to the price of commodity transacted in bulk for further resale or processing.

How do you find the price index?

To calculate the Price Index, take the price of the Market Basket of the year of interest and divide by the price of the Market Basket of the base year, then multiply by 100.

How do I read my WPI index?

Wholesale price indexes (WPIs) are reported monthly in order to show the average price changes of goods. The total costs of the goods being considered in one year are then compared with the total costs of goods in the base year. The total prices for the base year are equal to 100 on the scale.

What is included in WPI?

Major components of WPI

• Primary articles is a major component of WPI, further subdivided into Food Articles and Non-Food Articles.
• Food Articles include items such as Cereals, Paddy, Wheat, Pulses, Vegetables, Fruits, Milk, Eggs, Meat & Fish, etc.
• Non-Food Articles include Oil Seeds, Minerals and Crude Petroleum.

Why is CPI better than WPI?

Mainly WPI focus on prices of goods traded between business houses whereas CPI focuses on prices of goods purchased by consumers. As CPI provides more clarity about inflation and its economy on the overall economy hence CPI is widely used for calculating inflation as compared to WPI. So, monetary policy.

What is WPI Upsc?

Wholesale Price Index It measures the changes in the prices of goods sold and traded in bulk by wholesale businesses to other businesses. Published by the Office of Economic Adviser, Ministry of Commerce and Industry. The base year of All-India WPI has been revised from 2004-05 to 2011-12 in 2017.

How do you calculate inflation over 10 years?

First, subtract the CPI from the beginning date (A) from the later date (B), and divide it by the CPI for the beginning date (A). Then multiply the result by 100 to get the inflation rate percentage.

How do you read CPI data?

It is based upon the index average for the period from 1982 through 1984 (inclusive), which was set to 100. 1 So a CPI reading of 100 means that inflation is back to the level that it was in 1984, while readings of 175 and 225 would indicate a rise in the inflation level of 75% and 125% respectively.

What is the formula to calculate CPI?

To find the CPI in any year, divide the cost of the market basket in year t by the cost of the same market basket in the base year. The CPI in 1984 = $75/$75 x 100 = 100 The CPI is just an index value and it is indexed to 100 in the base year, in this case 1984.

What is wholesale price index (WPI)?

The Wholesale Price Index represents the price of a basket of wholesale goods. WPI focuses on the price of goods that are traded between corporations. It does not concentrate on goods purchased by the consumers. The main objective of WPI is monitoring price drifts that reflect demand and supply in manufacturing, construction and industry.

What is the current rate of inflation based on WPI food index?

The rate of inflation based on WPI Food Index increased from 5.28% in March, 2021 to 7.58% in April, 2021. Final Index for the month of February, 2021-For the month of February, 2021 the final Wholesale Price Index and inflation rate for ‘All Commodities’ (Base: 2011-12=100) stood at 128.1 and 4.83% respectively.

What is the linklinking factor given for conversion of WPI (2011-12) indices?

Linking factor given for conversion of WPI (2011-12) indices to WPI (2004-05) series should be used from April 2017 onwards. WPI captures the average movement of wholesale prices of goods and is primarily used as a GDP deflator. WPI (2011-12) reckons only basic prices and does not include taxes, rebate/trade discounts, transport and other charges.

What is the importance of WPI in macroeconomics?

WPI helps in assessing macroeconomic as well as microeconomic conditions of an economy. Generally, WPI and CPI (Consumer Price Index) are used to calculate the inflation rates.