WPI index shows reflection of average price changes of goods that are bought and sold in the wholesale

market. WPI index is

published by the Office of Economic Adviser, Ministry of Commerce and Industry. It is published weekly and contains 676 items. CPI index shows reflection of price changes from the perspective of buyer.CPI is published by the Labor Bureau. CPI is the index for the common people WPI is released on weekly basis while CPI is published on monthly basis so there is time lag in the availability of the data of WPI and CPI which can be crucial for decision making bodies like RBI , Banks and Government of India.

WPI measures inflation at each stage of production and gives the middle point of the total of all the goods bought by the traders While CPI calculates inflation at last stage only and gives the middle point of the total of all goods bought by consumers.

Reasons why WPI is used because in India we had four CPIs for different segmentation of populations . now we have one measure of retail inflation which is parted in to show how prices in Urban and Rural India are changing. WPI is calculated for all India basis whereas CPI is calculated only for specific centers in India and later added for all India basis. .