With reference to India consider the following statements The Wholesale Price Index WPI in Indi...........

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With reference to India, consider the following statements :

The Wholesale Price Index (WPI) in India is available on a monthly basis only.
As compared to the Consumer Price Index for Industrial Workers (CPI(IW)), the WPI gives less weight to food articles.

Which of the statements given above is/are correct?

1 only

2 only

Both 1 and 2

Neither 1 nor 2

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Explanation:

The Wholesale Price Index represents the price of a basket of wholesale goods. WPI focuses on the price of goods that are traded between corporations. It does not concentrate on goods purchased by the consumers. At present, the wholesale price index (WPI) issues index for 697 items. WPI calculation covers primary goods, fuel, electricity and manufactured products. Figures related to Wholesale Price Index are published by the Office of Economic Advisor (Ministry of Commerce & Industry). The base year for the Wholesale Price Index (WPI) is 2011-12. It was changed in May 2017. Provisional figures of Wholesale Price Index (WPI) are released on the 14th of every month (or next working day) with a time lag of two weeks of the reference month based on data compiled from institutional sources and selected manufacturing units across the country.

CPI indicates the average change in the prices of commodities at the retail level. It focuses of the prices of goods and services utilised among consumers.The data of the Consumer Price Index (CPI) is released by the Central Statistics Office of the Ministry of Statistics and Program Implementation. It measures inflation at final stage of a transaction. Its base year is 2012. Commodites included in CPI are: Education, communication, transportation, recreation, apparel, foods and beverages, housing and medical care

The CPI-IW is mainly used for determining dearness allowance (DA) paid to central/state government employees and workers in the industrial sectors besides measuring inflation in retail prices, fixation and revision of minimum wages in scheduled employments.
CPI-IW is compiled and maintained by the Labour Bureau, an attached office of the Ministry of Labour & Employment. The new series of CPI-IW with base 2016 has replaced the existing series with base 2001.

At present, India has five consumer price indexes (CPIs), three of which are working-class specific. These are:
- CPI for Industrial Workers (IW).
- CPI for Agricultural Labourer (AL).
- CPI for Rural Labourer (RL).
  - These three indexes are compiled by the Labour Bureau in the Ministry of Labour and Employment.
  - CPIs AL and RL are used to fix minimum wages of agricultural labourers and rural unskilled employees.
  - The Labour Bureau is also expected to bring out the new series of the CPI- AL/RL, which currently has the base year of 1986-87 by August 2021.
The other two are CPI-Urban and CPI Rural. These two indexes are compiled by the National Statistical Office (NSO) in the Ministry of Statistics and Programme Implementation (MoSPI).
- The combined rise in retail prices is captured by CPI Combined.
A committee set up by the National Statistical Commission (NSC) in 2005 under the recommendation of Dr C Rangarajan Commission, has suggested that CPI-Rural and CPI-Urban could be a substitute for CPI-AL/RL and CPI-IW, respectively.