The full form of WPI is Wholesale Price Index.
Understanding the Wholesale Price Index (WPI)
The Wholesale Price Index (WPI) measures the changes in the prices of goods at the wholesale level, before they reach consumers. It's an important economic indicator, particularly in countries like India, where it is used to track inflation. Here's a breakdown:
-
Definition: As the definition states, the Wholesale Price Index (WPI) represents the price of goods at a wholesale stage i.e. goods that are sold in bulk and traded between organizations instead of consumers.
-
Purpose: WPI is used as a measure of inflation in some economies.
-
Relevance: It's particularly relevant in India, where it serves as a key indicator of inflation.
| Term | Definition |
|---|---|
| Wholesale Price Index | Measures the changes in prices of goods at the wholesale level. |
| Inflation | A general increase in prices and fall in the purchasing value of money. |
