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Economics • Banking & FinanceEasy

What does the term 'Wholesale Price Index (WPI)' measure in India, distinct from consumer price indices?

A. The average change in prices of goods sold and traded in bulk by wholesale businesses and producers.✓ Correct Answer
B. The retail cost of essential food items purchased directly by urban households.
C. The international purchasing power parity of the Indian Rupee against the US Dollar.
D. The cost of construction materials used in public infrastructure projects.

💡 Solution & Explanation

The Wholesale Price Index measures the average change in commodity prices at the wholesale or producer level before goods reach retail consumers, covering primary articles, fuel, and manufactured products. Options focusing on retail consumer baskets or international exchange rates describe different macroeconomic indicators. The WPI data in India is published monthly by the Office of the Economic Adviser under the Ministry of Commerce and Industry.

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