Consider the following statements regarding weightage of different articles in Wholesale Price Index (WPI): 1. Fuel and power have higher weightage in WPI than that of primary articles. 2. Weightage of manufactured products in WPI is higher than that of fuel and power. Which of the statements given above is/are correct?
- (a)1 only
- (b)2 only
- (c)Both 1 and 2
- (d)Neither 1 nor 2
Correct — B, 2 only. The Wholesale Price Index on the 2011-12 base carries three major groups with fixed weights, and the Office of the Economic Adviser prints them at the head of every monthly release: primary articles 22.62 per cent, fuel and power 13.15 per cent, and manufactured products 64.23 per cent, adding to 100. Statement 1 therefore fails — fuel and power is the smallest of the three groups, well below primary articles, not above it. Statement 2 holds comfortably: manufactured products at 64.23 per cent are almost five times the weight of fuel and power, and account for nearly two-thirds of the whole index on their own.
- (a)1 only — Keeps the wrong statement. Fuel and power carries 13.15 per cent against primary articles' 22.62 per cent, so the ranking in statement 1 is inverted.
- (c)Both 1 and 2 — Statement 2 is correct, but statement 1 reverses the actual order of the two smaller groups, so the pair cannot both stand.
- (d)Neither 1 nor 2 — Too harsh on statement 2 — manufactured products at 64.23 per cent are unambiguously heavier than fuel and power at 13.15 per cent.
The Wholesale Price Index is compiled by the Office of the Economic Adviser in the Department for Promotion of Industry and Internal Trade, and measures the price of goods traded in bulk at the first point of sale. On the 2011-12 base its 100 points are divided among primary articles at 22.62, fuel and power at 13.15, and manufactured products at 64.23. It covers goods only — no services enter it at all — which is the sharpest structural difference between the WPI and the Consumer Price Index.
Almost every WPI question is decided by the weighting pattern, so the three numbers are worth memorising outright, and they are stable because they change only when the base year changes. Two related facts often decide sibling questions. First, food carries a far heavier weight in the CPI than in the WPI, which is why the two indices can move in opposite directions for months. Second, the Reserve Bank's inflation-targeting framework is built on CPI-Combined, not on the WPI, despite the WPI being the older series. As of the release for April 2026 the index was still on the 2011-12 base, so the weights quoted here remain the operative ones; a change of base year would redraw them, and that is the one development to watch.
- WPI weights on the 2011-12 base: primary articles 22.62, fuel and power 13.15, manufactured products 64.23, all commodities 100.00.
- Manufactured products alone account for nearly two-thirds of the index.
- The WPI covers goods only and captures no services; the CPI covers both.
- Food carries a much higher weight in the CPI than in the WPI.
- The Office of the Economic Adviser releases the WPI monthly, and the April 2026 release was still on the 2011-12 base.
Statement 1 claims fuel and power outweighs primary articles; the weights say the reverse.
- Assuming fuel matters most in a wholesale index because fuel prices are volatile; volatility is not weight.
- Carrying CPI intuitions into the WPI — food dominates one and manufacturing the other.
- Believing the Reserve Bank targets the WPI; it has used CPI-Combined since the inflation-targeting framework was adopted.
Asked as a two-statement item comparing the weights of two major groups, so the ranking of all three must be known, not just one figure.
Consider the following statements: 1. The weight of food items is higher in the Consumer Price Index (CPI) than in the Wholesale Price Index (WPI). 2. WPI does not capture changes in the prices of services, whereas CPI does. 3. The Reserve Bank of India has adopted WPI for its primary measure of inflation and for deciding key policy rates. Which of the statements given above is/are correct?
- (a) 1 and 2 only
- (b) 2 only
- (c) 3 only
- (d) 1, 2 and 3
Answer(a) 1 and 2 only
The same weighting question asked across the two indices instead of within one. Its statement 1 is the CPI-versus-WPI food comparison and its statement 3 is the trap about which index the Reserve Bank actually targets — both worth carrying into any WPI item.
With reference to India, consider the following statements: 1. The Wholesale Price Index (WPI) in India is available on a monthly basis only. 2. As compared to 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?
- (a) 1 only
- (b) 2 only
- (c) Both 1 and 2
- (d) Neither 1 nor 2
Answer(c) Both 1 and 2
An older run at the same weighting theme, this time against CPI for Industrial Workers, and it also fixes the release frequency — the WPI is a monthly series.
- practice — not a real PYQ
In the Wholesale Price Index on the 2011-12 base, which major group carries the largest weight?
- (a)Primary articles
- (b)Fuel and power
- (c)Manufactured products
- (d)Services
Answer(c) Manufactured products — 64.23 per cent of the index; services do not enter the WPI at all.
- practice — not a real PYQ
Which one of the following is compiled by the Office of the Economic Adviser?
- (a)Consumer Price Index (Combined)
- (b)Wholesale Price Index
- (c)Consumer Price Index for Industrial Workers
- (d)Index of Industrial Production
Answer(b) Wholesale Price Index — released monthly by the Office of the Economic Adviser under the Department for Promotion of Industry and Internal Trade.