Facts for Prelims (FFP)
Source: Business Line
Context: Recently, India’s Wholesale Price Index (WPI)-based inflation surged to a 13-month high of 1.26%, up from 0.5%, driven primarily by increases in food and fuel prices.
- Economists noted that this spike was influenced by seasonal factors and base effects.
- Food inflation, specifically, hit an eight-month high at 5.5%, with manufactured food products and primary food articles contributing significantly.
The Wholesale Price Index (WPI) is an economic indicator that measures the average change in prices of goods at the wholesale level, i.e., before they reach the retail level.
It is used to track inflation and deflation trends in the economy by reflecting price changes in a basket of wholesale goods.
