Social Sciences, asked by ashokkumarsingh4278, 1 year ago

Wholesale price index in based on paasche index?

Answers

Answered by pavan85
1
The Wholesale Price Index (WPI) is theprice of a representative basket ofwholesale goods. Some countries (like the Philippines) use WPI changes as a central measure of inflation.But now India has adopted new CPI to measure inflation. However, United States now report a producer price index instead.

The Wholesale Price Index or WPI is "the price of a representative basket of wholesale goods". Some countries use the changes in this index to measure inflation in their economies, in particular India – The Indian WPI figure was released weekly on every Thursday .

But since 2009 it has been made monthly. It also influences stock and fixed price markets. The WPI is published by the Economic Adviser in the Ministry of Commerce and Industry.The Wholesale Price Index focuses on the price of goods traded between corporations, rather than goods bought by consumers, which is measured by the Consumer Price Index. The purpose of the WPI is to monitor price movements that reflect supply and demand in industry, manufacturing and construction. This helps in analyzing both macroeconomic and microeconomic conditions.

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