How is Wholesale Price Index different from Consumer Price Indices?

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answered Mar 15, 2022 by Mayankchhawani (38.3k points)
selected Mar 16, 2022 by DamienMartyn

Best answer

Change in price is measured with the help of a statistical device referred to as “Price Index”. Price Index is of two types.

They are –

1. Consumer Price Index

2. Wholesale Price Index

The Consumer Price Index	The Wholesale Price Index
1. The CPI measures only changes in prices of a few selected consumer goods at retail price.	1. The Wholesale Price Index includes all goods and changes in their wholesale rates.
2. Different CPIs are published by government.	2. There is only one wholesale price index.
3. The CPIs are used to calculate the DA to be paid for government employees.	3. The inflation is generally measured on the basis of changes in WPI.