What is the Wholesale Price Index?
Definition of Wholesale Price Index: It is also known as WPI and is used for measuring and maintaining a record of the changes in the costs that the sellers pay for finished products. Inflationary pressures show the previous at the wholesale stage before it attains the retail shelves. Generally, the sign is calculated by checking the costs for the representative group of the wholesale products. The survey contains nearly 2,400 products. The wholesale cost index mainly focuses on the cost of goods purchased and sold between the businesses, than the products purchased by the customers. Consumer price index also known as CPI calculates the latter. Monitoring cost movements that reflect the demand and supply in the industry, construction and manufacturing is the main reason of using WPI. The procedure helps the analysts in interpreting the macroeconomic and microeconomic conditions.