In India, inflation is measured as change in the Wholesale Price Index (WPI).
WPI is the index that is used to measure the change in the average price level of goods traded in wholesale market. In India, a total of 435 commodities data on price level is tracked through WPI which is an indicator of movement in prices of commodities in all trade and transactions.
WPI was first published in 1902, and was one of the more economic indicators available to policy makers until it was replaced by most developed countries by the Consumer Price Index in the 1970s. It is also the price index which is available on a weekly basis with the shortest possible time lag only two weeks.
To provide the current price data for the construction of the index, a monthly survey of wholesale prices is conducted. The WPI is disaggregated into five commodity groups: Agriculture, Manufacturing, Mining and Quarrying, Imports and Exports, where each sector consists of sub commodity groups.
No comments:
Post a Comment