Economic Indicators of India- Consumer Price Index and Wholesale Price Index and Index of Industrial Production

1. LEKSHMI NATH B
ECONOMIC
INDICATORS

2. WHOLESALE PRICE INDEX
INDEX OF INDUSTRIAL PRODUCTION
CONSUMER PRICE INDEX

3. • WPI is the price of a representative
basket of wholesale goods.DEFINITION
• the price of goods traded between
corporations, rather than goods bought
by consumers.FOCUS
• to monitor price movements that reflect
supply and demand in industry,
manufacturing and construction.
PURPOSE

4. Who calculates &When?
• Office of the Economic Adviser
• Department of Industrial Policy and Promotion
• In Ministry of Commerce & Industry.
• Weekly (every Thursday)
• 14th of Every month: all commodities

5. • Wholesale prices in India rose by 2.48 percent year-
on-year in February of 2018, after a 2.84 percent
increase in the prior month while markets estimated
a 2.5 percent gain.
• It was the lowest wholesale inflation since July 2017,
as cost of food and fuel rose at softer paces.
• WPI is calculated on a base year (2011-12) a set of
676 items and their price changes are used for the
calculation.

6. • CPI is a measure of change in retail
prices of goods and services
consumed by defined population
group in a given area with reference
to a base year.
DEFINITION
• to index (i.e., adjust for the effect
of inflation) the real value of wages,
salaries, pensions, for regulating
prices and for deflating monetary
magnitudes to show changes in real
values
PURPOSE

7. • Central Statistics Office (CSO)
• Ministry of Statistics and Programme
Implementation (MOSPI)
• Monthly basis: for urban, rural, all India.
• Annual: with lag of one month.
• State/UT’s separate CPIs released only if they provide
80% of the necessary data.

8. • CPI calculates using Lespeyer’s formula, Base
year 2010

9. • Consumer Price Index CPI in India decreased
to 136.40 Index Points in February from
136.90 Index Points in January of 2018.
• CPI reached an all time high of 137.60 Index
Points in November of 2017 and a record low
of 86.81 Index Points in February of 2011.

10. • measures the quantum of changes in the
industrial production in an economy and
captures the general level of industrial
activity in the country.
DEFINITION
• IIP comprises three distinct groups
of industry, (a) Mining, (b)
Manufacturing and (c) Electricity.
INDUSTRY
• The current base year is 2011-2012.
BASE YEAR

11. • The index is a simple weighted arithmetic mean of production
relatives calculated by using Laspeyre’s formula :
• I=S (Wi Ri)/S Wi
• I is the Index, Ri is the production relative of the ith item for
the month in question and Wi is the weight allotted to it.
• India's industrial production rose by 7.5 percent year-on-year
in January 2018, following a 7.1 percent gain in the previous
month and beating market expectations of 6.7 percent

12. THANK
YOU