Wholesale Price Index (WPI) Inflation

Why in news?

Congress criticized the government over rising WPI inflation, stating that prices of essential commodities are increasing significantly, causing hardship to families.

Key points

1. 1WPI inflation rose to 9.92% in August, up from 9.78% in July.
2. 2Inflation in food index increased to 7.05% in August.
3. 3WPI inflation for manufactured items reached a series high of 8.37%.
4. 4Congress highlighted that inflation-adjusted wages have been falling, particularly in rural India.
5. 5The rising inflation is attributed partly to the West Asia conflict and disruptions in the Strait of Hormuz.

Background & context

WPI measures the average change over time in the prices of goods while they are wholesale transactions and is an important indicator of inflation in the economy. It is influenced by global commodity prices, supply chain issues, and domestic demand-supply dynamics.