Wholesale Price Index (WPI)
General Economics Intermediateथोक मूल्य सूचकांक
Definition
WPI measures the average change in prices of goods at the wholesale level (before retail markup). It includes manufactured goods, primary articles, and fuel. WPI was India's primary inflation measure until 2014 when CPI was adopted. WPI is still used for deflating industrial output and trade data.
Related Budget Terms
Why Wholesale Price Index (WPI) Matters
Understanding wholesale price index (wpi) is essential for anyone following government finances, preparing for competitive exams, or analysing India's economic policy. This concept directly affects how the government allocates resources and plans its fiscal strategy.
In the context of India's Union Budget 2026-27, with a total size of Rs 53.47 lakh crore, terms like wholesale price index (wpi) help citizens and analysts evaluate whether the government is on the right fiscal path. The numbers in the budget are only meaningful when one understands the underlying concepts.
For UPSC aspirants, wholesale price index (wpi) is frequently tested in both Prelims and Mains, particularly in Paper III (Economic Development). For CA and MBA students, this concept appears in public finance and macroeconomics courses.
Explore Budget Data
Explore More Budget Terms
Browse our glossary of 100+ government budget terms