Q. Consider the following statements regarding Consumer Price Index (CPI) and Wholesale Price Index (WPI)
1. WPI tracks inflation at the producer level and CPI captures changes in prices levels at the consumer level.
2. CPI does not capture changes in the prices of services, which WPI does.
Which of the above statements is/are correct?
Answer: A
Notes:
Recently, the Office of the Economic Adviser, Department for Promotion of Industry and Internal Trade has released the Wholesale Price Index (WPI) for the month of June, 2021.
Difference between CPI and WPI:
WPI tracks inflation at the producer level and CPI captures changes in prices levels at the consumer level.
WPI does not capture changes in the prices of services, which CPI does.
Read more: Understanding WPI/CPI/PPI and more.
