CPI, WPI and core inflation
India measures inflation with two monthly indices, at the shop counter and the wholesale gate, and strips volatile items for core inflation.
What the paper can ask
- WPI has been rebased several times (1993-94, 2004-05, 2011-12 and again in 2026); its three groups are primary articles, fuel and power, and manufactured products, and it covers goods, not services.
- Core inflation removes items with large short-term swings from the headline index; Robert Gordon introduced the idea in 1975 and Otto Eckstein gave the first formal definition.
- Retail inflation on the old 2012 base ended with December 2025 at 1.33 percent; the new series started with January 2026 at about 2.75 percent. (as of 23 Oct 2026)
Latest
A new CPI series with 2024 as base year was launched on 12 February 2026 (replacing 2012); a new WPI series with base 2022-23 (replacing 2011-12) and 957 items came on 15 June 2026 from the Office of the Economic Adviser, DPIIT. February 2026 CPI inflation was 3.21 percent.
Why exams ask
Setters ask which office publishes each index, the current base years, what core inflation leaves out, and the latest monthly reading.
The full story
An inflation rate is the yearly change in a price index. The Consumer Price Index tracks what households pay for a basket of goods and services, so it is called retail inflation and is the number the targets. The Wholesale Price Index tracks prices of goods traded in bulk between firms: primary articles, fuel and power, manufactured products. Each index is published monthly by a different arm of government and rebased every few years.
Test yourself
1.Which body releases India's monthly Consumer Price Index (CPI), the retail inflation measure?
Correct. The NSO under MoSPI releases CPI around the 12th of each month. From February 2026 the CPI uses a new base year of 2024=100.
Not quite. The NSO under MoSPI releases CPI around the 12th of each month. From February 2026 the CPI uses a new base year of 2024=100. It goes into your error book.
2.The Wholesale Price Index (WPI) in India is released by:
Correct. WPI is compiled by the Office of the Economic Adviser in DPIIT under the Ministry of Commerce and Industry; CPI comes from MoSPI.
Not quite. WPI is compiled by the Office of the Economic Adviser in DPIIT under the Ministry of Commerce and Industry; CPI comes from MoSPI. It goes into your error book.
3.In June 2026 the base year of the Wholesale Price Index was revised from 2011-12 to:
Correct. The revised WPI series with base year 2022-23 was released on 15 June 2026, along with new Producer Price Indices.
Not quite. The revised WPI series with base year 2022-23 was released on 15 June 2026, along with new Producer Price Indices. It goes into your error book.