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Consider the following statements with respect to Consumer Price Index and Wholesale Price Index in India: 1. The WPI is calculated for only goods and CPI is calculated for both goods and services.  2. The WPI is published by the Office of the Economic Advisor in the Ministry of Commerce and Industry while the CPI is published by the Central Statistical Office. 3. The WPI is published on a weekly basis for primary articles and fuel and power and is published monthly for the rest of the items, whereas the CPI is released on a monthly basis. 4. The WPI measures inflation in the initial stages of the supply chain whereas the CPI measure inflation in the later stages of the supply chain. Which among the above given statements are correct?

Consider the following statements with respect to Consumer Price Index and Wholesale Price Index in India: 1. The WPI is calculated for only goods and CPI is calculated for both goods and services.  2. The WPI is published by the Office of the Economic Advisor in the Ministry of Commerce and Industry while the CPI is published by the Central Statistical Office. 3. The WPI is published on a weekly basis for primary articles and fuel and power and is published monthly for the rest of the items, whereas the CPI is released on a monthly basis. 4. The WPI measures inflation in the initial stages of the supply chain whereas the CPI measure inflation in the later stages of the supply chain. Which among the above given statements are correct? Correct Answer All of the above

The correct answer is All of the above.

Key Points

  • 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.
  • Consumer Price Index (CPI):
    • The CPI is a measure that assesses the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care, purchased by households.
Context WPI CPI
Commodities Goods only Goods and Services both
Publishing office Office of Economic Advisor (Ministry of Commerce & Industry) Central Statistics Office (Ministry of Statistics and Programme Implementation) & Labour Bureau
Base Year 2011-12 2012
Basis Weekly and Monthly Monthly
Inflation Measurement  First stage of a transaction Final stage of a transaction
Prices paid by Manufacturers and wholesalers Consumers

 

  • Hence, statement 1, 2, 3 and 4 are correct.

Related Questions

Which of the following is correct about WPI (Wholesale Price Index) related to inflation? (A) It measures the wholesale prices on a weekly basis. (B) It focuses on both goods as well as services. (C) t measures the wholesale prices on a monthly basis. (D) It focuses only on goods, not on services.
Consider the following statements: 1. The weightage of food in Consumer Price Index (CPI) is higher than that in Wholesale Price Index (WPI). 2. The WPI does not capture changes in the prices of services, which CPI does. 3. Reserve Bank of India has now adopted WPI as its key measure of inflation and to decide on changing the key policy rates. Which of the statements given above is/are correct?
Which of the following correctly explains the difference between WPI and CPI inflation? 1. CPI accounts for the services too unlike WPI. 2. CPI measures inflation down to the retail consumer level, unlike WPI. 3. Both indicators can be used for the measurement of inflation. Choose the correct answer using the codes below:
With reference to India, consider the following statements: 1. The Wholesale Price Index (WPI) in India is available on a monthly basis only. 2. 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/are correct?
Consider the following statements regarding the measurement of rate of inflation.
Statement I The rate of inflation is measured on the basis of price indices which are of two kinds-Wholesale Price Index (WPI) and Consumer Price Index (CPl).
Statement II A price index is a measure of the average level of prices.
Statement III Price index shows the exact price rise or fall of a single good.
Consider the statements: RBI uses inflation targets to decide its various monetary policy rates.  RBI only considers only CPI for inflation targeting. RBI uses CPI along with WPI for inflation targeting. Inflation targeting guarantees economic stability in a country. Which of the following statements are true?
Consider the following consume price indices. I. Consumer Price Index for Industrial Workers II. Consumer Price Index for Agricultural Labourers III. Consumer Price Index for Rural Labourers IV. Consumer Price Index for Urban Non-Manual Employees   Which of the above indices is/are compiled by Central Statistical Organization (CSO)?
As per the data released by the Commerce and Industry Ministry, Wholesale Price Index (WPI) deflation in primary articles was how much per cent in April 2020, as against inflation of 3.72% in March 2020?
Two statements are followed by three Conclusions I, II and III. You have to consider the statements to be true, even if they seem to be at variance from commonly known facts. You are to decide which of the given conclusions can definitely be drawn from the given statements and indicate your answer accordingly. Statements: I. After a Pay Commission bonanza of 2% hike in dearness allowance in March, central government employees and pensioners can expect another round of salary increase with the government set to modify the index and base year for calculating dearness allowance.  II. The labour ministry is working on a new series of consumer price index for industrial workers (CPI-IW), which is used to determine dearness allowance (DA).  Conclusions: I. DA is a cost of living adjustment allowance paid to government employees, public sector employees and pensioners in the country. It is calculated as a percentage of an employee’s basic salary to mitigate the impact of inflation on people.  II. Since theindex is used to determine dearness allowance of all government employees and industrial workers there may be significant financial implication. III. The trend so far is that the weightage of transport, healthcare and housing has gone up many fold in the new series in the monthly expenditure of an industrial worker, especially consumption of petrol and diesel with the addition of cars to it, while there is decline in overall food basket which is being diversified.
The following sentences form a paragraph.They are numbered as P, Q, R and S. These four parts are not given in their proper order. Read the sentences and choose the alternative that arranges them in correct order. P. It is the ratio of the value of goods and services an economy produces in a particular year at current prices to that of prices that prevailed during the base year. Q. The GDP deflator, also called implicit price deflator, is a measure of inflation. R. Since the deflator covers the entire range of goods and services produced in the economy — as against the limited commodity baskets for the wholesale or consumer price indices — it is seen as a more comprehensive measure of inflation. S. This ratio helps show the extent to which the increase in gross domestic product has happened on account of higher prices rather than increase in output.