Wholesale Price Index (WPI) is an indicator of price changes in the wholesale markets while Consumer Price Index (CPI) is an indicator of price changes to the final consumers. Manufacturing Goods (64%) and Food and Beverages (~50%) have the highest weight age in WPI and CPI respectively.

 Insights - WPI generally leads the trend in CPI. However, low commodity prices and high food prices were partly responsible for the divergence for HI FY16 and the trend seems to have reversed now. With base effects wading off and commodity and food prices both expected to remain at current or higher levels, the divergence between WPI and CPI is narrowing.