Why in News?
CPI-based retail inflation dropped to a 77-month low of 2.1% in June 2025, while WPI contracted after 20 months. The decline was driven by easing food prices for the eighth consecutive month and deflation in key items like vegetables and crude oil.
Description:
| Feature | Consumer Price Index (CPI) | Wholesale Price Index (WPI) |
| Meaning | Measures retail inflation paid by consumers | Measures wholesale inflation faced by producers |
| Published by | National Statistical Office (NSO), Ministry of Statistics & Programme Implementation | Office of Economic Adviser, Ministry of Commerce & Industry |
| Base Year (as of 2025) | 2012 (for CPI-Combined) | 2011–12 |
| Frequency | Monthly | Monthly |
| Price Level Captured At | Retail level | Wholesale level |
| Weightage – Food Items | High (≈ 45% in CPI-Combined) | Low (≈ 24%) |
| Coverage | Goods & services (includes health, education, housing, etc.) | Goods only (excludes services) |
| Used by RBI for Inflation Targeting? | Yes – CPI (Combined) is the benchmark for RBI’s inflation targeting | No |
| Types of Indices | CPI-Rural, CPI-Urban, CPI-Combined, CPI for Industrial Workers (IW), Agricultural Labourers (AL), etc. | Single WPI index with major groups: Primary Articles, Fuel & Power, Manufactured Products |
| Reflects Impact On | Consumers (end users) | Producers and distributors |
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