WPI vs CPI – Key differences

Real growth comes wiht these two factors for any economy

WPI calculates the average price change at a wholesale level,

whereas the CPI calculates the difference in the prices at a retail level.

While WPI is concerned with the goods that the trading houses trade,

CPI is concerned with the goods that the consumers purchase.

WPI only measures goods,

while the CPI measures goods and services. It measures inflation in the first stage

CPI measures inflation in the final stage.

WPI is the value a retailer/distributor pays.

CPI is the price a consumer pays

WPI articles cover fuel, energy, and manufacturing products,

CPI articles cover education, transportation, communications, recreation, clothing, housing, and healthcare

Only a few countries use the wholesale index, whereas more than 157 countries primarily use the consumer index.

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