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WPI vs CPI

Why WPI Has No Statutory Inflation Target

WPI and the Consumer Price Index (CPI) measure different stages of the price chain: WPI captures wholesale/producer-level prices (excluding services and indirect taxes), while CPI captures retail prices actually paid by consumers (including services and taxes). Only CPI carries a statutory inflation-targeting mandate in India.

Key details

The Reserve Bank of India's Flexible Inflation Targeting (FIT) framework, introduced via the Finance Act, 2016 (inserting Section 45-ZA into the RBI Act, 1934), obliges the RBI to keep CPI (Combined) inflation within a Government-notified target — currently 4%, with a tolerance band of 2% to 6%.
WPI has no equivalent legal target; it functions as a leading indicator of pipeline/producer-level cost pressure that can feed into future CPI readings.
The Monetary Policy Committee (MPC), constituted under Section 45-ZB of the RBI Act (six members: RBI Governor as Chair, one RBI Deputy Governor, one RBI Board nominee, and three Government-appointed external members), reviews such wholesale indicators as one input while setting the policy repo rate, even though its statutory mandate is defined only in terms of CPI.

In the news

● Tracked since February 13, 2026 · last seen September 14, 2026 · updates as the daily brief publishes

14 Sep '26

WPI Inflation Hits 9.92% in August: Second-Highest Reading in the New 2022-23 Base Series

14 Aug '26

WPI Eases to 9.8% While Retail and Food Inflation Rise: India's Dual Inflation Indices

14 Aug '26

Wholesale Inflation Eases to 9.78% in July, but Core WPI Hits a Series High

02 Jul '26

India's Inflation Targeting Framework: RBI Signals Long-Term Stability, No Target Revision

15 Jun '26

Wholesale Inflation Surges to 9.68% in May 2026 on Crude Oil Price Shock

15 Jun '26

Wholesale Inflation Hits 9.68% in May 2026 Under Revamped WPI Series

18 May '26

WPI Inflation Approaching 10%: Fuel Price Hikes and Wholesale Cost Pressures

14 May '26

WPI Inflation Surges to 42-Month High of 8.3% in April 2026 Driven by Fuel and Power

14 May '26

Wholesale Price Inflation Surges to 8.3% in April 2026, Driven by Fuel and Energy

15 Apr '26

India's Wholesale Inflation Hits 41-Month High of 3.88% in March 2026

15 Apr '26

Wholesale Inflation Hits 38-Month High of 3.88% in March 2026

15 Apr '26

Wholesale Inflation Rises to 3.88% in March 2026: A Three-Year High

15 Apr '26

WPI Inflation Surges to 38-Month High in March 2026 Amid West Asia Energy Shock

15 Apr '26

WPI Inflation Hits 38-Month High of 3.88% in March 2026 Driven by Energy Costs

25 Mar '26

India Renews 4% Inflation Target: Understanding the Flexible Inflation Targeting Framework

17 Mar '26

India's Wholesale Inflation Reaches 11-Month High of 2.13% in February 2026

16 Mar '26

WPI Inflation Climbs to 11-Month High of 2.13% in February 2026

16 Mar '26

WPI Framework and India's Wholesale Inflation: Understanding the Index Behind the February 2026 Numbers

14 Mar '26

Iran War Triggers Food Inflation in Gulf Region as Freight Costs Soar and Stocks Thin

12 Mar '26

Retail Inflation Rises to 3.21% in February 2026 Under New CPI Series

16 Feb '26

Wholesale Price Inflation Rises to 1.81% in January 2026, Three-Month Upward Trend Continues

16 Feb '26

India's Wholesale Price Inflation Rises to 10-Month High of 1.81% in January 2026

13 Feb '26

India Updates CPI Inflation Series to Base Year 2024=100, Expanding Consumer Basket

Related concepts

Wholesale Price Index (WPI)

Polity & Governance

Flexible Inflation Targeting (FIT) Framework

Monetary Policy Committee (MPC)

Inflation Targeting Framework

Consumer Price Index (CPI)

GDP Base Year Revision

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