Consider the following statements about Wholesale Price Index WPI 1 WPI is average price changes of ...........

Economic Affairs Inflation

Consider the following statements about Wholesale Price Index (WPI):

1. WPI is average price changes of goods and services that are traded in the wholesale market.

2. It is published by CSO.

3. In the new series of WPI, prices used for compilation do not include indirect taxes.

Which of the above statements are NOT correct?

1 and 2 only

2 and 3 only

3 only

1, 2 and 3

Explanation:

WPI is average price changes of goods (Not services) that are traded in the wholesale market.
It is a weekly measure of wholesale price movement of the economy.
It includes only the prices of goods and does not include items pertaining to services.
WPI is published by the Office of Economic Adviser, Ministry of Commerce and Industry weekly.
In the new series of WPI prices used for compilation do not include indirect taxes in order to remove impact of fiscal policy.

Additional Information:

The base year of All-India WPI has been revised from 2004-05 to 2011-12 by the Office of Economic Adviser, Ministry of Commerce and Industry.

New Features:

In the new series of WPI, prices used for compilation do not includeindirect taxes in order to re move impact of fiscal policy.
This is inconsonance with international practices and will make the new WPI conceptually closer to ‘Producer Price Index’.
A new “WPI Food Index” will be compiled to capture the rate of inflation in food items.
Seasonality of fruits and vegetables has been updated to account formore months as these are now available for longer duration.
Item level aggregates for new WPI are compiled using Geometric Mean (GM) following internationalbest practice and as is currently used for compilation of All India CPI.
A high-level Technical Review Committee has been set up for the firsttime to carry out dynamic review process in order to keep pace with the changing structure of the economy