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Consider the following items of wholesale price index : 1. Primary

June 1, 2025 by rawan239

Consider the following items of wholesale price index :

1. Primary articles
2. Fuel, power, lights and lubricants
3. Manufacturing products

Arrange the above items in descending order in terms of their weightage in calculating wholesale price index :

1, 2, 3

1, 3, 2

3, 1, 2

3, 2, 1

This question was previously asked in

UPSC CAPF – 2010

Download PDF Attempt Online

Arranging the items in descending order of their weightage in calculating the Wholesale Price Index (WPI) gives: Manufacturing products, Primary articles, Fuel, power, lights and lubricants.

The Wholesale Price Index (WPI) in India is calculated based on the weighted average of prices of a basket of commodities. The commodities are classified into three major groups with different weightages reflecting their relative importance in wholesale trade. As per the current series (Base Year 2011-12), the weightages are approximately: Manufactured Products (64.23%), Primary Articles (22.62%), and Fuel & Power (13.15%). While the exact percentages may vary slightly with base year revisions, the descending order of weightage consistently remains Manufacturing > Primary > Fuel & Power.

WPI measures the average change in the prices of commodities at the wholesale level. It is primarily used as a macroeconomic indicator for monitoring inflation, formulating trade and fiscal policies, and in business decisions like price negotiation and escalation clauses. The base year for WPI is revised periodically to reflect changes in the structure of the economy.

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