INFLATION: It is an economic condition in which prices of goods and services rise and the value of money falls or money circulation exceeds the production of goods and services.

               DISINFLATION:  It refers to a situation in which prices are brought down moderately from their higher level without any adverse impact on production and employment.


Consumer Price Index(CPI) looks at the price at which the consumer buys goods, the Wholesale Price Index(WPI) tracks prices at the wholesale, or factory gate/mandi levels.

          WPI only tracks basic prices devoid of transportation cost, taxes and the retail margin etc. And that WPI pertains to only goods, not services.

              The CPI is a measure that assesses the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care, purchased by households.

                     The Difference between WPI and CPI

Calculates the average change in prices of commodities at the wholesale level.( First stage of a transaction)At the retail level.( Final stage of a transaction)
Data published By: Office of Economic Advisor (Ministry of Commerce & Industry)Central Statistics Office (Ministry of Statistics and Programme Implementation) & Labour Bureau
Covers Goods onlyGoods and Services both
Manufacturers and wholesalers              (Producer Level)Consumers (Consumer Level)
Manufacturing inputs and intermediate goods like minerals, machinery basic metals, etc.Education, communication,  transportation, recreation, apparel, foods and beverages, housing and medical care
Base Year:2011-122012

In April 2014, the RBI had adopted the CPI as its key measure of inflation.( Urjit R. Patel Committee report recommendations


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