Inflation means a general rise in the level of prices consistently over a period of time. There are various methods to calculate inflation. It is measured majorly through WPI and CPI in India. Let us see the major differences between the two.
Matters of comparison
It measures the changes in prices of goods at the wholesale level i.e. stages before the retail level.
It measures the changes in prices of goods and services at the retail level.
Office of Economic Adviser in the Ministry of Commerce and Industry
CPI (Rural, Urban, Combined) are published by the Central Statistics Office under the Ministry of Statistics and Programme Implementation.
CPI (IW/Industrial Worker), CPI (Rural Labourer), CPI (Agricultural Labourer) by Labour Bureau
Data Released on
Weekly basis (primary articles, fuel and power) and
Monthly basis (overall data)
Measures Prices of
Goods only, services are excluded
Both goods and Services
At the first stage of the transaction
At the final stage of the transaction
Prices paid by
Manufacturers and wholesalers
Basket of Items
697 items into three groups:
Primary articles, Fuel and Power, Manufactured Goods
448 items (Rural)
460 items (Urban).
CPI basket is classified into various categories: food and beverages, clothing, housing, fuel and light, recreation and etc.