Wholesale Price Index (WPI) is a key economic indicator that measures the average change in prices of goods at the wholesale level — before they reach consumers. It helps track inflation trends and provides valuable insights into the overall health of an economy. In India, the WPI is published monthly by the Office of the Economic Adviser (OEA), Ministry of Commerce and Industry. This index reflects price movements of goods traded in bulk, such as manufactured products, fuel, power, and primary articles like food grains and minerals.

The base year currently used for calculating WPI in India is 2011–12. It covers three major categories: Primary Articles (22.6%), Fuel & Power (13.2%), and Manufactured Products (64.2%). The WPI serves as an essential tool for policymakers, economists, and analysts to study inflationary pressures from the supply side. It also plays a vital role in formulating fiscal and monetary policies, helping authorities maintain price stability and control inflation effectively.

Unlike the Consumer Price Index (CPI), which measures retail inflation experienced by consumers, the WPI tracks wholesale-level price changes. Therefore, it primarily reflects price fluctuations for producers and businesses. A rise in the WPI indicates an increase in production or input costs, which may eventually influence consumer prices if passed on to end users.

Monitoring WPI trends helps businesses, investors, and government bodies assess cost pressures, predict inflationary movements, and make informed decisions. Understanding this index is crucial for anyone analyzing macroeconomic trends, investment strategies, or financial planning. The WPI thus acts as a critical measure of economic stability and growth, reflecting the underlying price behavior of India’s wholesale market.