The provisional Wholesale Price Index (WPI) for June 2023 in India has recorded a decline of 4.12% compared to the previous year. This decrease in the WPI is primarily attributed to falling prices in various sectors, including mineral oils, food products, basic metals, crude petroleum & natural gas, and textiles.
Index Numbers & Annual Rate of Inflation (Y-o-Y in %)
| Category | Weight (%) | Apr-23 (F) | May-23 (P) | June-23 (P) |
|---|---|---|---|---|
| All Commodities | 100.0 | 151.1 | -0.79 | 149.0 |
| I. Primary Articles | 22.62 | 177.8 | 1.89 | 176.3 |
| II. Fuel & Power | 13.15 | 152.7 | 0.99 | 146.0 |
| III. Manufactured Products | 64.23 | 141.4 | -2.28 | 140.0 |
| Food Index | 24.38 | 174.0 | 0.40 | 175.2 |
Primary Articles
The index for primary articles increased by 0.57% to 176.3 (provisional) in June 2023 compared to May 2023. The prices of food articles increased by 2.10%, while non-food articles (-2.40%), crude petroleum and natural gas (-3.01%), and minerals (-4.32%) witnessed a decline in prices.
Fuel & Power
The index for fuel and power declined by 1.75% to 146.0 (provisional) in June 2023 compared to May 2023. Coal prices increased by 2.46%, but mineral oils (-2.30%) and electricity (-2.96%) experienced a decrease in prices.
Manufactured Products
The index for manufactured products declined by 0.50% to 140.0 (provisional) in June 2023 compared to May 2023. Among the 22 NIC two-digit groups for manufactured products, 11 groups saw a decrease in prices, including basic metals, chemical and chemical products, textiles, rubber & plastic products, and paper & paper products.
However, some groups such as tobacco products, computer, electronic and optical products, leather and related products, motor vehicles, trailers and semi-trailers, wood and products of wood and cork, printing & reproduction of recorded media, and other non-metallic mineral products witnessed an increase in prices.
WPI Food Index
The WPI Food Index, which includes food articles from the primary articles group and food products from the manufactured products group, increased from 172.8 in May 2023 to 175.2 in June 2023. The annual rate of inflation based on the WPI Food Index changed from -1.59% in May 2023 to -1.24% in June 2023.
All About Wholesale Price Index (WPI) and Consumer Price Index (CPI)
| Wholesale Price Index (WPI) | Consumer Price Index (CPI) | |
|---|---|---|
| Definition | Measures changes in prices of goods sold in bulk by wholesalers | Measures changes in prices of goods and services bought by consumers |
| Published by | Office of Economic Adviser, Ministry of Commerce and Industry | National Statistical Office (NSO) |
| Widely used | Yes | Yes |
| Major criticism | General public does not buy products at wholesale price | – |
| Base Year | Revised from 2004-05 to 2011-12 in 2017 | 2012 |
| Types | – | CPI for Industrial Workers (IW) |
| CPI for Agricultural Labourer (AL) | ||
| CPI for Rural Labourer (RL) | ||
| CPI (Rural/Urban/Combined) | ||
| Compilation Authority | – | Labour Bureau (Ministry of Labour and Employment) |
| National Statistical Office (Ministry of Statistics and Programme Implementation) | ||
| Recent Changes/Revisions | – | New series of CPI-IW with base year 2016 released by Ministry of Labour and Employment |
| Used by | – | Monetary Policy Committee (MPC) for controlling inflation |
| Reserve Bank of India (RBI) as key measure of inflation since April 2014 |
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