WPI and CPI Inflation Rates [Link]

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WPI and CPI Inflation Rates [Link]

WPI AND CPI INFLATION RATES



16 Mar 2022 5 min read

Tags: GS Paper - 3 Growth & Development Monetary Policy



Wholesale Price Index, Consumer Price Index, Monetary Policy Committee, Reserve Bank of
India.

In�ation and its impact, Monetary Policy.

Why in News?

Data released by the government showed that while the retail
in�ation rate in India -measured by the - came in at 6.07% in February 2022.

 is the Wholesale Price Index?

What
▪ It measures the in bulk by wholesale
businesses to other businesses.

▪ Published by the Ministry of Commerce and Industry.

▪It is the .

▪ Major criticism for this index is that the

 .

▪ The base year of All-India WPI has been revised from .

What is the Consumer Price Index?

▪ It measures . It is released by
the National Statistical O�ce (NSO).

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WPI and CPI Inflation Rates [Link]

▪ The CPI such as

food, medical care, education, electronics etc, which Indian consumers buy for use.

▪ The CPI has fuel and light,

housing and clothing, bedding and footwear.

▪ Four types of CPI are as follows:

◦ CPI for Industrial Workers (IW).

 ◦ CPI for Agricultural Labourer (AL).

◦ CPI for Rural Labourer (RL).

 ◦ CPI (Rural/Urban/Combined).

◦ Of these, the �rst three are compiled by the

. Fourth is compiled by the
.

▪ for CPI is .

◦ Recently, the Ministry of Labour and Employment released the

 with base year 2016.

▪ The Monetary Policy Committee (MPC) uses CPI data to control in�ation. In April
2014, the had adopted the CPI as its key measure of
in�ation.

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WPI and CPI Inflation Rates [Link]

What
 is the difference between CPI and WPI?

▪ WPI tracks and CPI

 .

▪ WPI which CPI does.

▪ while in more
weightage is given .

What
 is In�ation?

▪ In�ation refers to the of daily or

common use, such as food, clothing, housing, recreation, transport, consumer
staples, etc.

▪ In�ation measures the


.

▪ In�ation is of a unit of a
country’s currency.

◦ This could ultimately lead to a deceleration in economic growth.


▪ However, a to ensure that
production is promoted.

▪ In India, — WPI & CPI which

measure wholesale and retail-level price changes, respectively.

MindMaps for UPSC - In�ation: Meaning, Type and Impact (Economy

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WPI and CPI Inflation Rates [Link]

MindMaps for UPSC - In�ation: Meaning, Type and Impact (Economy

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