Lok Sabha Question No. 2199 (UNSTARRED), answered on 2016-11-29
Subject: Gap between CPI and WPI
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: VIRENDRA  KUMAR

## Government of India Department of Consumer Affairs

## ORIGINAL IN HINDI

## Ministry of Consumer Affairs, Food and Public Distribution

## LOK SABHA

## UNSTARRED QUESTION NO. 2199

TO BE ANSWERED ON 29.11.2016

## GAP BETWEEN CPI AND WPI

## 2199.  DR. VIRENDRA KUMAR:

(OIH)

## Will the Minister of CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION miHkksDrk ekeys] [kk| vkSj lkoZtfud forj.k ea=h be pleased to state:

- (a) whether  there  has  been  a  wide  gap  between  Consumer  Price  Index  (CPI)  and Wholesale Price Index (WPI) during the last three years; and
- (b) if so, the details thereof and the response of the Government thereto;
- (c) whether such gap has also been seen in the prices in the organized and unorganized retail markets and if so, the details thereof; and
- (d) the corrective action taken in this regard?

## ANSWER

## miHkksDrk ekeys] [kk| vkSj lkoZtfud forj.k jkT; ea=h ¼Jh lh vkj pkS/kjh½

## THE MINISTER OF STATE CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION (SHRI C. R. CHAUDHARY)

- (a) & (b) :  Details of WPI and CPI for last three years is at Annexure.

The  difference  between  Wholesale  Price  Index  (WPI)  and  Consumer  Price  Index (CPI) is partly due to difference in composition of item basket, weighting diagrams and the markets.  The  WPI  basket  assigns  significantly  larger  weight  to  tradeable  commodities  and comparatively  lower  weight  to  food  items,  while  CPI  basket  assigns  higher  weight  to  food items and includes services like health and education. While  the prices of tradable commodities are largely influenced by international prices, the prices of non-traded food and services like education and health services are determined by domestic prices. Also the base year for WPI is 2004-05:100 and for CPI is 2012:100.

(c) & (d) :  Government does not maintain data with respect to gap in prices in the organized and unorganized retail markets. However, under the Essential Commodities Act, 1955 State Governments are empowered to control the prices at which any essential commodity may be bought or sold.

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STATEMENT  REFERRED  IN  REPLY  TO  PARTS  (a)  &  (b)  OF  LOK  SABHA UNSTARRED QUESTION NO.2199 FOR 29.11.2016 REGARDING GAP BETWEEN CPI AND WPI.

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Wholesale Price Index (WPI) and Consumer Price Index (CPI) for Last three years.

| WPI with base 2004-05=100 and CPI with base 2012=100   | WPI with base 2004-05=100 and CPI with base 2012=100   | WPI with base 2004-05=100 and CPI with base 2012=100   | WPI with base 2004-05=100 and CPI with base 2012=100   | WPI with base 2004-05=100 and CPI with base 2012=100   | WPI with base 2004-05=100 and CPI with base 2012=100   | WPI with base 2004-05=100 and CPI with base 2012=100   | WPI with base 2004-05=100 and CPI with base 2012=100   | WPI with base 2004-05=100 and CPI with base 2012=100   |
|--------------------------------------------------------|--------------------------------------------------------|--------------------------------------------------------|--------------------------------------------------------|--------------------------------------------------------|--------------------------------------------------------|--------------------------------------------------------|--------------------------------------------------------|--------------------------------------------------------|
| Months                                                 | 2013-14                                                | 2013-14                                                | 2014-15                                                | 2014-15                                                | 2015-16                                                | 2015-16                                                | 2016-17                                                | 2016-17                                                |
| Months                                                 | CPI                                                    | WPI                                                    | CPI                                                    | WPI                                                    | CPI                                                    | WPI                                                    | CPI                                                    | WPI                                                    |
| April                                                  | 106.1                                                  | 171.3                                                  | 115.1                                                  | 180.8                                                  | 120.7                                                  | 176.4                                                  | 127.3                                                  | 177.8                                                  |
| May                                                    | 106.9                                                  | 171.4                                                  | 115.8                                                  | 182.0                                                  | 121.6                                                  | 178.0                                                  | 128.6                                                  | 180.2                                                  |
| June                                                   | 109.3                                                  | 173.2                                                  | 116.7                                                  | 183.0                                                  | 123.0                                                  | 179.1                                                  | 130.1                                                  | 182.9                                                  |
| July                                                   | 111.0                                                  | 175.5                                                  | 119.2                                                  | 185.0                                                  | 123.6                                                  | 177.6                                                  | 131.1                                                  | 184.2                                                  |
| August                                                 | 112.4                                                  | 179.0                                                  | 120.3                                                  | 185.9                                                  | 124.8                                                  | 176.5                                                  | 131.1                                                  | 183.3                                                  |
| September                                              | 113.7                                                  | 180.7                                                  | 120.1                                                  | 185.0                                                  | 125.4                                                  | 176.5                                                  | 130.9                                                  | 182.8                                                  |
| October                                                | 114.8                                                  | 180.7                                                  | 120.1                                                  | 183.7                                                  | 126.1                                                  | 176.9                                                  | 131.4                                                  | 182.9                                                  |
| November                                               | 116.3                                                  | 181.5                                                  | 120.1                                                  | 181.2                                                  | 126.6                                                  | 177.5                                                  | -                                                      | -                                                      |
| December                                               | 114.5                                                  | 179.6                                                  | 119.4                                                  | 178.7                                                  | 126.1                                                  | 176.8                                                  | -                                                      | -                                                      |
| January                                                | 113.6                                                  | 179.0                                                  | 119.5                                                  | 177.3                                                  | 126.3                                                  | 175.4                                                  | -                                                      | -                                                      |
| February                                               | 113.6                                                  | 179.5                                                  | 119.7                                                  | 175.6                                                  | 126.0                                                  | 174.1                                                  | -                                                      | -                                                      |
| March                                                  | 114.2                                                  | 180.3                                                  | 120.2                                                  | 176.1                                                  | 126.0                                                  | 175.3                                                  | -                                                      | -                                                      |
| Average Index                                          | 112.2                                                  | 177.6                                                  | 118.9                                                  | 181.2                                                  | 124.7                                                  | 176.7                                                  | 130.1                                                  | 182.0                                                  |
| Average Inflation                                      | 9.5                                                    | 6.0                                                    | 5.9                                                    | 2.0                                                    | 4.9                                                    | -2.5                                                   | 5.2                                                    | 2.7                                                    |

WPI for September & October, 2016 and CPI for October, 2016 is provisional.

Source: Department  of  Industrial  policy  and  Promotion  for  WPI  and  Central  Statistical Organization for CPI.

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