differentiate between WPIand CPI - Economics - Index Numbers

Question

differentiate between WPIand CPI

Prince Verma · Accepted Answer

Basis of
Difference

CPI

WPI

Meaning

Consumer Price Index measures the changes in the cost of living in
which the retail prices of consumer goods and services are obtained
Some of the common goods and services used in the construction of
CPI are- food, clothing, housing, fuel and lighting, education,
etc
Wholesale Price Index in an index that
measures the overall changes in the price levels in the economy It
includes goods of three categories i e primary goods, fuels,
manufactured and industrial goods

Uses
It helps to measure purchasing power of
money, real wage rate etc
It helps to estimate rate of inflation,
measure changes in economic aggregates etc

Basis of Difference	CPI	WPI
Meaning	Consumer Price Index measures the changes in the cost of living in which the retail prices of consumer goods and services are obtained. Some of the common goods and services used in the construction of CPI are- food, clothing, housing, fuel and lighting, education, etc.	Wholesale Price Index in an index that measures the overall changes in the price levels in the economy. It includes goods of three categories i.e primary goods, fuels, manufactured and industrial goods.
Uses	It helps to measure purchasing power of money, real wage rate etc.	It helps to estimate rate of inflation, measure changes in economic aggregates etc.