Context: The annual inflation rate, based on the All India Wholesale Price Index (WPI), for the month of August 2023 (compared to August 2022), recently improved to (-) 0.52%, marking a positive shift from the (-) 1.36% recorded in July 2023.

Wholesale Price Index (WPI)

• About: The WPI is a gauge used to monitor and record fluctuations in the prices of bulk goods at the wholesale level within India.
• Published by: Office of Economic Adviser, Ministry of Commerce and Industry.
• Base year: WPI has been revised from 2004-05 to 2011-12 in 2017.
• Formula: WPI = (Total value of the basket of goods and services at current prices / Total value of the basket of goods and services at base year prices) x 100
• Component of WPI: Manufactured products = 65% approx (64.2% now)
• Primary articles = 20% approx (22.6% now)
• Fuel and power = 15% approx (13.1% now)