| Parameter | Wholesale Price Index (WPI) | Consumer Price Index (CPI) |
|---|---|---|
| Definition | WPI measures the changes in the price of goods before they are sold at retail. It represents the price of a basket of wholesale goods, i.e., goods sold in bulk and traded by wholesale businesses to other businesses. | CPI measures the changes over time in the price level of a basket of consumer goods and services bought by households. It captures changes in price level at the consumer level. |
| Published by | Office of the Economic Adviser (OEA) in the Department for Promotion of Industry and Internal Trade under the Ministry of Commerce and Industry | National Statistical Office (NSO) under the Ministry of Statistics and Programme Implementation (MoSPI) |
| Measures | Calculates the total change in wholesale prices of commodities | Calculates the special change in retail prices of goods and services |
| Scope | Covers only goods | Covers goods and services |
| Commodities | Fuel and Power, Food Articles, Non-Food Articles, Minerals, Crude Petroleum & Natural gas, Chemical and related products, Metal products, Raw metals, Alloys, Machinery, and other manufacturing inputs, etc. | Food and beverages, housing and clothing, bedding and footwear, fuel and light, etc. |
| Services | Services are not included in WPI | Services are included in the CPI like education, housing, medical care, etc. |
| Area of Focus | Focuses on wholesale goods, i.e., goods sold in bulk and traded between businesses (or wholesalers) | Focuses on goods and services that households purchased (or acquired) for the purpose of consumption |
| Stage involved | Measures the initial or the first stage of a transaction | Measures the final or last stage of a transaction |
| Price paid by | Wholesale dealers and manufacturers | Consumers |
| Reference Year for Calculation | Uses financial year as a reference | Uses calendar year as a reference |
| Base Year | The base year for WPI is 2011-12. | The base year for CPI is 2012. |
| Usage | WPI provides estimates of inflation at the wholesale transaction level for the economy overall. It helps in timely intervention by the government to monitor inflation before the price hike spills over to retail prices. WPI-based inflation estimates are used by the Government in the formation of trade, fiscal and other economic policies. WPI is also utilized for the purpose of escalation clauses in the supply of raw materials, machinery, and construction work. | CPI is a primary tool used by the Reserve Bank of India (RBI) to estimate inflation targets. RBI adopted the CPI as its key measure of inflation in April 2014. A CPI can be used to adjust for the effect of inflation, index the real value of wages, salaries, and pensions; to regulate prices; and to deflate monetary magnitudes to show changes in real values. |
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