WPI vs CPI
Two Inflation Gauges
India maintains two key inflation indices: CPI (consumer prices, measuring retail inflation experienced by households) and WPI (Wholesale Price Index, measuring price changes at the producer/wholesale level, compiled by the Office of the Economic Adviser under the Ministry of Commerce and Industry, base year 2011-12).
- WPI covers 697 items across primary articles, fuel & power, and manufactured products; it does not include services.
- CPI includes services (housing, healthcare, education, transport) and reflects household welfare more directly.
- WPI often diverges from CPI due to different basket compositions and supply chain margins — high WPI can lead to CPI inflation with a lag, or the gap can persist if supply chain efficiencies absorb wholesale price increases.
- The GDP deflator (implicit price deflator derived from nominal vs. real GDP) is a third, broader measure of economy-wide price change.
● Tracked since February 13, 2026 · last seen August 14, 2026 · updates as the daily brief publishes
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