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New WPI series drops papad, VCD and includes tissue paper

In the new series of WPI, prices used for compilation do not include indirect taxes in order to remove impact of fiscal policy.

ET Online|
May 12, 2017, 06.01 PM IST
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In the new series of WPI, prices used for compilation do not include indirect taxes in order to remove impact of fiscal policy.
In the new series of WPI, prices used for compilation do not include indirect taxes in order to remove impact of fiscal policy.
The government today released the new series of Wholesale Price Index (WPI) for more accurate mapping of economic activity. The new series will capture recent structural changes in the economy and improve the quality, coverage and representativeness of the indices.

The base year has been changed from 2004-05 to 2011-12. The old base year misses out on important developments in the economy since then.

The number of items has been increased from 676 to 697. In all, 199 new items have been added and 146 old items have been dropped.

The new series is more representative with increase in number of quotations from 5,482 to 8,331.

A major review of manufactured products has been carried out. Nearly 173 new items like conveyer belt, rubber tread, steel cables, tissue paper, wooden splint have been added, while 135 items like khandsari, papad and VCD players have been dropped.

In the new series of WPI, prices used for compilation do not include indirect taxes in order to remove impact of fiscal policy. This is in consonance with international practices and will make the new WPI conceptually closer to ‘Producer Price Index’.

A new 'WPI Food Index' will be compiled to capture the rate of inflation in food items.

Seasonality of fruits and vegetables has been updated to account for more months as these are now available for longer duration.

New vegetables and fruits such as radish, carrot, cucumber, bitter gourd, mosambi, pomegranate, jackfruit and pear have been added. In the mineral group items like copper concentrate, lead concentrate and garnet have been added whereas copper ore, gypsum, kaolin, dolomite, magnesite have been deleted. Natural Gas has been added as a new item.

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