Wholesale Inflation Rises to 49-Month High of 11.4%, Pg1

Key Highlights:

• Wholesale price inflation in India surged to 11.4% in September, marking a 49-month high based on the older series of the Wholesale Price Index (WPI).
• This figure represents a record high for the new series of the WPI, which has data available for the past two-and-a-half years.
• Inflation in the food articles component of the WPI sharply increased to 8.1% in September from 5.7% in the previous month.
• The non-food primary articles segment also experienced elevated inflation levels, reaching 10.3% in September.

Detailed Insights:

• The Wholesale Price Index (WPI) measures the average change in prices of goods at the wholesale level, providing an early indication of price pressures in the economy.
• The WPI is compiled and released monthly by the Office of the Economic Adviser under the Department for Promotion of Industry and Internal Trade, Ministry of Commerce and Industry.
• The current WPI series uses 2011-12 as its base year, though a new series with 2022-23 as the base year was introduced in June 2026 and will run in parallel for five years before replacing the older series.
• The rise in wholesale inflation is broad-based, affecting primary articles, fuel and power, and manufactured products.
• WPI is crucial for government intervention to control inflation in essential commodities before it impacts retail prices and is used as a deflator for GDP estimation.

Key Concepts Involved:

• Wholesale Price Index (WPI): An index measuring the average change in prices of goods at the wholesale level, indicating inflation at the producer or bulk transaction stage.
• Inflation: The rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.
• Base Year: A reference year for an index, set to 100, against which price changes in other years are measured to calculate inflation.