Explanation:

PPI is different from WPI on following grounds:

Statement 1 and 2: WPI captures the price changes at the point of bulk transactions and may include some taxes levied and distribution costs up to the stage of wholesale transactions. PPI measures the average change in prices received by the producer and excludes indirect taxes. A significant change in the new series of WPI (2011-12) has been the exclusion of indirect taxes while compiling indices of manufactured products. The Working Group for revision of WPI had recommended that taxes should not figure in this measure so that price signals emerging from production side of the economy are not influenced by the fiscal policy.

Statement 3 and 4: WPI does not cover services and whereas PPI includes services. Weights of items in WPI are based on net traded value whereas in PPI weights are derived from Supply Use Table. PPI removes the multiple counting biases inherent in WPI. Multiple counting occurs when the price for a specific commodity and the inputs used for its production are included in an aggregate index. PPIs significantly reduce the distortion arising from multiple counting by deriving weights from Supply Use Table compiled by the CSO. The benefits of migrating from WPI to PPI are to cover bulk transactions of all goods and services, do away with the bias of double counting inherent in WPI and to compile indices that are conceptually consistent with the National Accounts Statistics (NAS) for use as deflators.