Wholesale Inflation
It is based on the Wholesale Price Index (WPI) which measures the changes in the price of 697 goods sold and traded in bulk by wholesale businesses to other businesses. Analysts use the numbers to track the supply and demand dynamics in industry, manufacturing and construction. The numbers are released by the Ministry of Commerce and Industry. An upward surge in the WPI print indicates inflationary pressure in the economy and vice versa. The quantum of rise in the WPI month-after-month is used to measure the level of wholesale inflation in the economy.
The wholesale price basket is broadly grouped into Primary articles, Fuel & Power, and Manufactured Goods.
- Primary articles: It constitutes 22.6% of the overall Wholesale Price Index. It is further subdivided into Food Articles, Non-food articles, Minerals, and Crude Petroleum & Natural Gas
- Fuel & Power: It constitutes 13.2% of the overall Wholesale Price Index and tracks price movements in Petrol, Diesel and LPG
- Manufactured products: This is the biggest component basket in and carries a weightage of 64.2% in the overall WPI. It comprises of a variety of manufactured products such as Textiles, Apparels, Paper, Chemicals, Plastic, Cement, Metals, etc and Manufactured Goods such as Sugar, Tobacco Products, Vegetable and Animal Oils, etc.
It is based on the Wholesale Price Index (WPI) which measures the changes in the price of 697 goods sold and traded in bulk by wholesale businesses to other businesses. Analysts use the numbers to track the supply and demand dynamics in industry, manufacturing and construction. The numbers are released by the Ministry of Commerce and Industry. An upward surge in the WPI print indicates inflationary pressure in the economy and vice versa. The quantum of rise in the WPI month-after-month is used to measure the level of wholesale inflation in the economy.
The wholesale price basket is broadly grouped into Primary articles, Fuel & Power, and Manufactured Goods.
- Primary articles: It constitutes 22.6% of the overall Wholesale Price Index. It is further subdivided into Food Articles, Non-food articles, Minerals, and Crude Petroleum & Natural Gas
- Fuel & Power: It constitutes 13.2% of the overall Wholesale Price Index and tracks price movements in Petrol, Diesel and LPG
- Manufactured products: This is the biggest component basket in and carries a weightage of 64.2% in the overall WPI. It comprises of a variety of manufactured products such as Textiles, Apparels, Paper, Chemicals, Plastic, Cement, Metals, etc and Manufactured Goods such as Sugar, Tobacco Products, Vegetable and Animal Oils, etc.



SUBJECT Variables
ALL COMMODITIES
- The wholesale price-based inflation, based on the Wholesale Price Index (WPI), eased to a 3-year low of -4.12% in Jun'23.
- The annual wholesale YoY inflation rate reduced to 9.4% in 2022-23 from 13% in 2021-22. The high inflation in 2021-22 can be primarily attributed to a lower base effect as the comparison is with 2020-21 where the wholesale inflation clocked just 1.3% due to the Covid outbreak. When compared with 2019-20, the annual wholesale inflation rate in 2022-23 was 8.4%.



Primary articles constitutes 22.6% of the overall Wholesale Price Index. It is further subdivided into:
- Food Articles: This includes items such as Cereals, Paddy, Wheat, Pulses, Vegetables, Fruits, Milk, Eggs, Meat & Fish, etc.
- Non-Food Articles: This includes items such as Oil seeds.
- Minerals
- Crude Petroleum and Natural Gas



- Inflation in primary articles decreased from -1.79% in May'23 to -2.87% in Jun'23. Within primary articles, the prices of crude petroleum & natural gas decreased by 21.43%, non-food articles by 9.72%, and food articles increased by 1.32% in Jun'23.
- The annual wholesale inflation rate for primary articles touched 10.1% YoY in 2022-23 from 10.2% in 2021-22. The high inflation in 2021-22 can be primarily attributed to a lower base effect as the comparison is with 2020-21 where the inflation clocked just 1.7% due to the Covid outbreak. When compared with 2019-20, the annual wholesale inflation rate for primary articles in 2022-23 was 7.8%.



Fuel & Power
This indicator tracks price movements in Petrol, Diesel and LPG and constitutes 13.2% of the overall Wholesale Price Index.



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