Wholesale Price Index and CPI-IW comparison — UPSC Prelims PYQ 2010

With reference to India, consider the following statements:

The Wholesale Price Index (WPI) in India is available on a monthly basis only.
As compared to Consumer Price Index for Industrial Workers (CPI-IW), the WPI gives less weight to food articles.

Which of the statements given above is or are correct?

1 Only
2 Only
Both 1 and 2
Neither 1 nor 2

Explanation

Statement 1 is correct

The Wholesale Price Index (WPI) in India is released monthly by the Office of the Economic Adviser, Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry.

Statement 2 is correct

The Consumer Price Index for Industrial Workers assigns a significantly higher weight to food articles compared to the Wholesale Price Index.

Infographic explaining inflation measurement through Consumer Price Index (CPI), Consumer Food Price Index, and Wholesale Price Index (WPI), highlighting their definitions, base years, and components. It includes pie charts showing commodity weights in CPI and WPI, a comparison table of CPI, WPI, and GDP deflator, and key details on data sources and exclusions like taxes and discounts.