Understand economic concepts, supply and demand, inflation, GDP, financial decisions, economic policies, and markets through clear explanations and practical examples.
Economics · Inflation · India
Discover how wholesale prices of fuel, agricultural goods and manufactured products are measured—and how these changes reveal inflation trends in India.
Price Tracking
Goods & Commodities
Food, raw materials and primary goods
Fuel & Power
Energy prices
Manufacturing
Industrial goods
WPI Inflation
Track how wholesale prices change over time
From commodity prices to inflation trends
The Wholesale Price Index (WPI) measures changes over time in the prices of a selected basket of commodities at the wholesale or early transaction stage. It shows how the overall index changes relative to a reference period.
In India, the Office of the Economic Adviser under the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry, compiles and publishes WPI.
WPI measures commodity prices, not the complete cost of living or the full range of services purchased by households.
01 / Official Indian Data
Explore the latest six-month figures reported in the Government of India's September 2026 WPI release. The index and inflation rate are shown separately because they measure different things.
OFFICIAL DATA · BASE YEAR 2022–23 = 100
The September release reports an all-commodities WPI of 112.5 and year-on-year WPI inflation of 11.39%. September and August are provisional estimates in this release.
Index level relative to the 2022–23 base period.
Source: Government of India, September 2026 WPI release.
Percentage change from the same month of the previous year.
Source: Government of India, September 2026 WPI release.
| Month | WPI Index | YoY Inflation | Status |
|---|---|---|---|
| April 2026 | 108.9 | 8.36% | Final |
| May 2026 | 110.1 | 9.88% | Final |
| June 2026 | 110.3 | 9.97% | Final |
| July 2026 | 110.0 | 9.78% | Final |
| August 2026 | 110.8 | 9.92% | Provisional |
| September 2026 | 112.5 | 11.39% | Provisional |
The all-commodities index rose from 108.9 in April to 112.5 in September. Year-on-year WPI inflation rose from 8.36% to 11.39% over the same months. This indicates a higher index level and a faster annual rate of wholesale price increase in September.
Source: Government of India, Ministry of Commerce & Industry, September 2026 WPI release. August and September are provisional; April–July are final in this release. Figures may be revised.
02 / Understand The Concept
WPI summarises the movement of wholesale commodity prices. It does not simply report the price of one product or the price paid by every customer.
A flour mill purchases wheat from a mandi and sells processed flour in bulk to distributors. WPI helps track price changes across a broad commodity basket. It does not directly measure the retail price of a packet of flour bought by a family.
Thousands of commodity prices can move in different directions. An index combines selected price movements using assigned weights to summarise their overall movement in one number.
No. An index of 110 means the overall index is 10% above its base level of 100. Some commodities may have risen more, some less, and others may have become cheaper.
03 / Visual Guide
Follow the process from collecting commodity prices to calculating the published inflation rate.
STEP 01
Collect wholesale price information for selected commodities.
STEP 02
Compare observed prices with prices in the reference period.
STEP 03
Give commodities different importance according to their assigned weights.
STEP 04
Combine weighted price indices using the official methodology.
STEP 05
Compare the current index with the index for the same month last year.
Simplified educational diagram. The official index uses the government's detailed methodology, price data and weights.
04 / Basket Of Commodities
The current 2022–23 series includes 957 items organised into three major groups, each with a different weight in the overall index.
GROUP 01
22.75730%
Official weight in the current series
Agricultural products, food articles, non-food articles and minerals.
Real-World Example
A poor onion harvest can reduce market arrivals and push up wholesale onion prices.
GROUP 02
14.11433%
Official weight in the current series
Coal and lignite, mineral oils, electricity, crude petroleum and natural gas.
Real-World Example
Higher energy prices may increase transport and manufacturing costs.
GROUP 03
63.12837%
Official weight in the current series
Metals, chemicals, textiles, machinery, processed food and other manufactured goods.
Real-World Example
Higher steel prices may increase costs for machinery and construction-related manufacturers.
Important: These are the official weights for the 2022–23 series. Manufactured products have the largest weight of the three major groups. A group's weight indicates its importance in the index, not its current inflation rate.
05 / An Important Difference
WPI is an index number. WPI inflation is the percentage change in that index over a specified period.
The Index
The index is 10% above its base level of 100. This is a comparison with the base period, not necessarily the current inflation rate.
The Inflation Rate
If the index rises from 120 to 126 over a year, the year-on-year inflation rate is 5%.
(126 − 120) ÷ 120 × 100 = 5%
A high index does not automatically mean a high current inflation rate. Inflation depends on how the index compares with the earlier period you choose.
06 / Calculation With Numbers
For the headline year-on-year rate, compare the WPI index for a month with the index for the same month of the previous year.
Formula: Year-On-Year WPI Inflation
[(Current WPI − Previous-Year WPI) ÷ Previous-Year WPI] × 100
October last year
120
Illustrative WPI
October this year
126
Illustrative WPI
[(126 − 120) ÷ 120] × 100 = 5%
The index is 5% higher than in the same month of the previous year. This example uses hypothetical values, not actual October data.
Price Relative = (Current Price ÷ Base-Period Price) × 100
Suppose a commodity costs ₹50 in the base period and ₹60 now.
(₹60 ÷ ₹50) × 100 = 120
Its simple price relative is 120, meaning the price is 20% above the base-period price. This is an illustration for one commodity, not the complete national WPI calculation.
The base year provides a reference point for the index. India's current WPI series uses 2022–23 as its base year, with the base index set to 100. The government revises the series and weights to better reflect the changing structure of the economy.
07 / Indian Market Examples
These examples show possible economic effects of price movements. They are illustrative scenarios, not claims about current commodity prices.
EXAMPLE 01
Heavy rainfall damages onion crops.
Market arrivals fall and wholesale onion prices rise.
Traders and food processors may face higher purchasing costs.
What This Shows
WPI can reflect wholesale agricultural price changes. Retail onion prices may change by a different amount or at a different time.
EXAMPLE 02
Steel prices rise because of higher input costs or stronger demand.
Construction firms and manufacturers face higher material costs.
Businesses may raise selling prices or accept lower profit margins.
What This Shows
Wholesale price movements can affect project budgets, but the final effect depends on contracts, inventories and competition.
EXAMPLE 03
International crude oil prices increase.
Some petroleum products and transport inputs become more expensive.
Manufacturers and distributors may face higher costs to move goods.
What This Shows
Energy prices can influence several industries, but the effect depends on domestic prices, taxes and other conditions.
EXAMPLE 04
Favourable weather improves crop production.
Supply increases and wholesale prices of some crops fall.
Food processors may benefit from lower raw-material costs.
What This Shows
Some commodity prices can fall even while prices of other goods continue to rise.
08 / Causes Of Price Changes
Wholesale prices depend on domestic production, global markets, business costs and government policy. Different factors affect different commodities.
FACTOR 1
Droughts, floods and heatwaves can reduce crop supply. A bumper harvest can increase supply and reduce prices.
Example
If onion arrivals at Indian mandis fall after crop damage, wholesale onion prices may rise.
FACTOR 2
Energy costs influence petroleum products, freight, chemicals and energy-intensive manufacturing.
Example
Higher fuel-related costs may make it more expensive to transport wheat, cement and steel.
FACTOR 3
Strong demand combined with limited supply can raise prices. Excess supply or weak demand can lower them.
Example
Strong construction activity may increase demand for steel and other building materials.
FACTOR 4
Changes in global prices can affect the domestic prices of imported or internationally traded commodities.
Example
A global increase in copper prices may raise the input costs of electrical equipment manufacturers.
FACTOR 5
A weaker rupee can make imported raw materials more expensive in rupee terms.
Example
An importer paying for an input in US dollars may face higher costs when the rupee depreciates.
FACTOR 6
Import duties, export restrictions, procurement decisions and other policy changes can affect market supply and prices.
Example
A change in import duties may influence domestic prices of a commodity purchased from abroad.
FACTOR 7
Raw materials, electricity, packaging, labour and freight can influence manufacturers' selling prices.
Example
A packaging manufacturer facing higher resin prices may increase its wholesale prices.
09 / Economic Importance
WPI helps businesses and policymakers understand changes in wholesale commodity prices and identify potential cost pressures.
WPI helps policymakers and analysts understand broad changes in wholesale commodity prices.
Manufacturers and wholesalers can examine price trends when estimating material costs and preparing budgets.
Changes in fuel, metals and chemicals can indicate changing cost pressures for businesses using these commodities.
Some contracts use agreed price indices to adjust payments when relevant costs change.
WPI can be studied alongside production, GDP and other indicators to understand wider economic conditions.
Reading WPI alongside CPI helps distinguish wholesale commodity inflation from consumer price inflation.
10 / Limitations
WPI is useful, but it cannot explain every change in the cost of living or provide a complete picture of inflation across the economy.
WPI tracks commodities rather than the complete range of goods and services purchased by households. CPI is more suitable for understanding consumer inflation.
Retail prices can include distribution margins, transport costs, applicable taxes and other expenses. Wholesale price changes do not always pass through fully to consumers.
They use different baskets and weights. Food, fuel, services, retail margins and other factors can affect the two indices differently.
Inventories, fixed-price contracts and competition can delay or reduce the effect of wholesale price changes on retail prices.
It is not a complete measure of service-sector prices or the entire economy.
Use CPI to understand consumer price movements. Depending on the question, also examine GDP growth, industrial production, wages and relevant commodity prices. No single indicator provides a complete picture of the economy.
Read About Consumer Price Index →11 / Comparison
Both indices measure price movements, but they answer different economic questions.
| Basis | WPI | CPI |
|---|---|---|
| Measures | Wholesale commodity price movements | Consumer price movements |
| Price stage | Wholesale or early transaction stage | Retail prices paid by consumers |
| Main purpose | Understand wholesale inflation and commodity costs | Understand consumer inflation and cost-of-living changes |
| Services | Does not cover services as a group | Includes selected consumer services |
| Useful for | Businesses, analysts and policymakers | Households, workers, policymakers and researchers |
| Inflation rate | May differ from CPI inflation | May differ from WPI inflation |
A factory owner investigating changes in steel, fuel or industrial raw-material costs may find WPI useful.
A family trying to understand changes in food, transport, housing, education and other household expenses should look at CPI.
12 / Interpreting Data
The rate tells you how the overall index changed, not how much every individual commodity changed.
+4%
The index is 4% higher than in the comparison period, indicating an overall increase in wholesale commodity prices.
0%
The overall index is unchanged from the comparison period. Individual commodity prices can still rise or fall.
−2%
The index is 2% lower than in the comparison period. This is negative wholesale inflation, but it does not mean every commodity has become cheaper.
Not necessarily. Lower input prices may benefit businesses, but falling prices may also reflect weak demand. Farmers and commodity producers may receive less for their output. The cause of the decline and wider economic conditions matter.
13 / Common Questions
Quick answers to common questions about India's Wholesale Price Index.
The Office of the Economic Adviser under the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry, compiles and publishes India's WPI.
The revised series introduced in June 2026 uses 2022–23 as its base year, with the base index set to 100.
The revised 2022–23 series includes 957 items, compared with 697 in the previous 2011–12 series.
WPI is an index number. WPI inflation is the percentage change in that index over a specified period, usually the same month of the previous year in India's headline monthly release.
Not directly. WPI measures wholesale commodity prices. CPI is more appropriate for understanding consumer price movements and changes in the cost of living.
Yes. Negative year-on-year WPI inflation means the index is lower than in the same period of the previous year. It does not mean every commodity has become cheaper.
No. Wholesale price changes may pass through to retail prices with a delay or only partially. Consumer prices are also affected by services, taxes, retail margins, demand and other conditions.
The Office of the Economic Adviser publishes official WPI data files, while the Press Information Bureau publishes monthly releases with index values and inflation rates.
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