Wholesale Price in India for the month of October, 2020
Provisional figures of Wholesale Price Index (WPI) are released on 14th of every month, with a time lag of two weeks of the reference month and compiled with data received from institutional sources and selected manufacturing units across the country.
Wholesale Price Index
- The WPI is the price of a representative basket of wholesale goods.
- Some countries (like the Philippines) use WPI changes as a central measure of inflation.
- But now India has adopted new Consumer Price Index(CPI) to measure inflation. However, United States now report a producer price index instead.
- It also influences stock and fixed price markets. The WPI is published by the Economic Adviser in the Ministry of Commerce and Industry.
- The Wholesale Price Index focuses on the price of goods traded between corporations, rather than the goods bought by consumers, which is measured by the Consumer Price Index.
- The purpose of the WPI is to monitor price movements that reflect supply and demand in industry, manufacturing and construction. This helps in analyzing both macroeconomic and microeconomic conditions.
The rate of inflation, based on monthly WPI, stood at 1.48% (provisional) for the month of October, 2020 (over October, 2019), as compared to 0.00 % during the corresponding month of the previous year.
Primary Articles (Weight 22.62%)
The index for this major group increased by 1.40% to 152.4 (provisional) in October, 2020 from 150.3 (provisional) for the month of September, 2020. Prices of Non-food Articles (2.37%), Food Articles (1.37%) and Minerals (0.66%) increased in October, 2020 compared to September, 2020. Prices of crude petroleum & natural gas remain unchanged.
Fuel & Power (Weight 13.15%)
The index for this major group increased by (0.11%) to 91.1 (provisional) in October, 2020 from 91.0 (provisional) for the month of September, 2020. Prices of Electricity (4.26%) increased in October, 2020 compared to September, 2020. Prices of Mineral Oils (-1.93%) declined in October, 2020 compared to September, 2020. Prices of coal remain unchanged.
Manufactured Products (Weight 64.23%)
The index for this major group increased by (0.42%) to 120.3 (provisional) in October, 2020 from 119.8 (provisional) for the month of September, 2020. Out of the 22 NIC two-digit groups for Manufactured products, 13 groups that have witnessed increase in prices, are manufacture of food products; textiles; wearing apparel; printing and reproduction of recorded media; chemicals and chemical products; pharmaceuticals, medicinal chemical and botanical products; rubber and plastics products; basic metals; fabricated metal products, except machinery and equipment; electrical equipment; machinery and equipment; other transport equipment; and furniture in October, 2020 as compared to September, 2020. Whereas 9 groups that have witnessed decrease in prices are manufacture of beverages; tobacco products; leather and related products; wood and of products of wood and cork; paper and paper products; other non-metallic mineral products; computer, electronic and optical products; motor vehicles, trailers and semi-trailers; and other manufacturing in October, 2020 as compared to September, 2020.
WPI Food Index (Weight 24.38%)
The Food Index consisting of 'Food Articles' from Primary Articles group and 'Food Product' from Manufactured Products group have increased from 157.6 in September, 2020 to 159.3 in October, 2020. The rate of inflation based on WPI Food Index decreased from 6.92% in September, 2020 to 5.78% in October, 2020.
Final Index for the month of August, 2020 (BASE YEAR:2011-12=100)
For the month of August, 2020 the final Wholesale Price Index and inflation rate for 'All Commodities' (Base: 2011-12=100) stood at 122.0 and 0.41% respectively.