CPI, WPI & GDP Deflator

CPI, WPI & GDP Deflator 

1. Consumer Price Index (CPI)

• Measures prices of both goods and services
• Reflects cost of living for households
• Used to track consumer inflation trends
• Released by National Statistical Office (NSO)
• High weightage of food (~45%)

2. Wholesale Price Index (WPI)

• Measures price changes at wholesale level (before reaching consumers)
• Covers only goods (excludes services)
• Used to track producer-side inflation
• Released by Office of the Economic Adviser under Ministry of Commerce & Industry
• Lower food weight (~24%)
• Higher fuel & power weight (~13%)

3. GDP Deflator

• Measures overall price level in the entire economy
• Covers:
  • Goods + Services + Investment goods + Government services
• More comprehensive than CPI & WPI
• Uses dynamic basket (no fixed basket)
  👉 Reflects actual production & consumption changes

KEY DIFFERENCES (TABLE)