What is Wholesale Price Index (WPI) ?

Defination:     

  • The Wholesale Price Index (WPI) is the index used to measure the changes in the average price level of goods traded in wholesale market.
  • Although some countries still use the WPIs as a measure of inflation, many countries, including the United States, use the producer price index (PPI) instead.
  • The wholesale price indexes used in Indonesia were originally set up in 1996.
  • The base year was reset in April of 2006 with a WPI value of 2000. 
  • Index values in Indonesia are commonly expressed as 2000 =100.  
  • The Indian Wholesale Price Index (WPI) was first published in 1902, and was used by policy makers until it was replaced by the Producer Price Index (PPI) in 1978.
  • A total of 435 commodity prices make up the index. 
  • It is available on a weekly basis. 
  • It is generally taken as an indicator of the inflation rate in the Indian economy. 
  • As an example, the Indonesian Agriculture WPI in February of 2008 was 5140, but was expressed in the recent tables released by Statistics Indonesia as 257 (calculated as 5140/[2000/100]=257).