CHAPTER - XII

TRENDS IN PRICES
 CHAPTER - XII

BASIC INFORMATION ABOUT THE CURRENT WHOLESALE PRICE INDEX (WPI)

Wholesale price used in the WPI is the basic (ex-factory/ex-mining) price of a commodity
minus trade discount (if any) plus central excise duty (including cess). Under the existing series of
WPI, the prices are collected for 435 commodities. The number of commodities remains unchanged,
price tend to vary.

Commodity basket Weight (%) Items(No.) Quotations(No.) Source of price data

All commodities 100.00 435 1918 497

Primary articles 22.02 98(22.53) 455(23.72) 31(6.24)
Fuel, power, light & lubricant 14.23 19(4.37) 72(3.75) 9(1.81)
ManufacturedProducts 63.75 318(73.10) 1391(72.52) 457(91.95)

1. Base year: 1993-94 = 100 (previous series 1981-82 =100)

2. No. of items and quotations in the 1993-94 series of WPI figures

(figures in bracket are percentage to column total)

3. (a) No. of essential commodities in the WPI basket =30

(b) Weight of 30 items in the WPI =17.63%

4. Break-up of sources of price quotations of 1993-94 series

Total Government Non- Government

1918 833 1085

(100.00) (43.00) (57.00)

5. Geographical spread of sources of 1993-94 series

Delhi = 741 No.s (39.00)

Outside Delhi = 1177 No.s (61.00)

6. Average response rate (as on 15.3.2005) = 7.013%

(i) Mineral items have highest response rate of 100%
(ii) Non- metallic Mineral products have lowest response rate of 52.38%

7. WPI data are released on weekly frequency. They are released on provisional basis with a time lag of
2weeks from the date of release. As for instance, data released on 25.3.2005 pertain to the week-
ended 12.3.05. Finalized data are released with a time lag of 8 weeks.

8. Method for construction of WPI

Laspeyre’s formula is used to measure WPI

WPI = [Q0P0X(Pn/P0)
[ Q0P0]

255
 TRENDS IN PRICES

BASIC INFORMATION ABOUT THE CURRENT WHOLESALE PRICE INDEX (WPI)

9. Formula for measuring contribution of a sub-group to overall change in WPI during a specified period:
(Change in sub-group Index divided by the change in all-commodity WPI of initial (previous) point of
time) multiplied by the weights of the sub-group.

10. For linking the indices of base 1981-82 =100 to the indices of base 1993-94 =100, the linking factor
is 2.478. Thus, the WPI with base 1981-82, when converted to 1993-94 base, would be WPI number
of 1981-82 multiplied by 2.478. Similarly, WPI of base 1993-94 =100 when converted to WPI of base
1981-82 =100 would be the WPI number of 1993-94 base divided by 2.478.

11. WPI is complied by the Office of the Economic Adviser in the Department of Industrial Policy &
Promotion. Matters relating to WPI can be accessed at the website http:/eaindustry.nic.in

12. Wholesale Price Indices and Inflation Rate (%) over years based on WPI (base year 1993- 94 =100).

Year 1999-2000 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08

Index 145.3 155.7 161.3 166.8 175.9 187.3 195.6 206.2 215.7
Inflation (%) 3.27 7.16 3.60 3.41 5.46 6.48 4.43 5.42 4.6

The index number for 1994-95 is 112.6. This means that the wholesale prices of ‘all-commodities’
increased by 12.6% in 1994-95 over 1993-94. The index for 2000-01 is 155.7. This implies that
compared to the price in 1993-94, the price in 2000-01 was 55.7% higher. It also implies that from
1993-94 to 2000-01, prices rose by 55.7%. It further implies that price in 2000-01 was 155.7% of what
it was in 1993-94.

It is very important to understand that changes in the Index from year to year may not be interpreted
as percentages when one of the two years is the base year. The fact that the Index for 2000-01 is
155.7 and for 2001-02 is 161.3 does not imply that the price in 2001-02 was 61.3-55.7 =5.6% higher
than in 2000-01. Comparisons in terms of percentages may be made only with the base-year. We
can only say that price in 2000-01 was 55.7% higher than 1993-94 and was 61.3% higher in 2001-02
than in 1993-94.

13. Changing the base period of an Index:

It is done by changing the index number of the new base period so that it will equal 100 and
than to change all other number using the same operation. Thus, all number in the old index is
divided by the index value of the proposed new base period, and them by 100:

New Index Value = Old Index Value/Index Value of new base*100

Source: Office of the Economic Adviser, Ministry of Commerce & Industry.

256
 TABLE 12.1
WHOLESALE PRICE INDEX - FINANCIAL AVERAGE OF MAJOR GROUPS AND SUB-GROUPS

(Base : 1993-94=100)

Financial Averages Percentage Change

CHAPTER - XII

Major Groups/Groups Weight 2003-04 2004-05 2005-06 2006-07 2007-08 2004-05 2005-06 2006-07 2007-08
All Commodtties 100.00000 175.9 187.3 195.6 206.2 215.7 6.5 4.4 5.4 4.6

I. Primary Article 22.02525 181.5 188.1 193.6 208.7 224.4 3.6 2.9 7.8 7.5
A. Food Articles 15.40246 181.5 186.3 195.3 210.5 222.0 2.6 4.8 7.8 5.5
B. Non-Food Articles 6.13812 186.3 187.6 179.1 188.2 211.9 0.7 (-)4.5 5.1 12.6
C. Minerals 0.48468 121.6 255.1 322.8 413.6 460.4 109.8 26.5 28.1 11.3
II. Fuel Power Light & Lubricant 14.22624 254.5 280.2 306.8 323.9 327.0 10.1 9.5 5.6 1.0
III. Manufactured Products 63.74851 156.5 166.3 171.4 179.0 187.8 6.3 3.1 4.4 4.9
A. Food Products 11.53781 166.7 174.9 176.8 182.5 190.2 4.9 1.1 3.2 4.2
Beverages Tobacco & Tobacco Product 1.33912 205.6 216.2 226.8 243.5 268.3 5.2 4.9 7.4 10.2
C. Textiles 9.79992 131.6 135.7 129.5 132.3 130.9 3.1 (-)4.6 2.2 (-)1.1
D. Wood & Wood Products 0.17306 179.4 179.5 194.6 206.3 215.9 0.1 8.4 6.0 4.7
E. Paper & Paper Products 2.04403 173.3 174.6 178.5 190.7 194.2 0.8 2.2 6.8 1.8
F. Leather & Leather Products 1.01933 146.9 155.7 166.8 159.5 166.1 6.0 7.1 (-)4.4 4.1
G. Rubber & Plastic Products 2.38819 135.0 134.5 139.1 148.2 158.9 (-)0.4 3.4 6.5 7.2
H. Chemical & Chemical Products 11.93121 177.2 181.7 188.2 193.9 204.6 2.5 3.6 3.0 5.5
I. Non-Mettallic Mineral Products 2.51591 148.3 157.7 170.0 191.7 208.7 6.3 7.8 12.8 8.9
Basic Metal Alloys & Metals Products 8.34186 167.8 203.3 218.4 233.3 248.6 21.2 7.4 6.8 6.6
K. Machinery & Machine Tools 8.36331 132.7 140.2 147.4 155.6 166.6 5.7 5.1 5.6 7.1
L Transport Equipment & Parts 4.29475 147.4 154.3 159.9 162.4 166.8 4.7 3.6 1.6 2.7

Source: Office of the Economic Adviser, Ministry of Commerce & Industry

257
 TRENDS IN PRICES

TABLE 12.2
INDEX NUMBERS OF WHOLESALE PRICE (AVERAGE OF MONTHS)
(Base: 1981-82=100)

Year General Index Percentage Wholesale Prices Percentage

of wholesale change compared Index for Manu- change compared
Prices to previous year factured Products to previous year
(Weight= 100.00) (Weight=570.42)

1 2 3 4 5

1971-72 105.6 5.6 109.5 9.5

1975-76 173.0 (–)1.1 171.2 1.4
1976-77 176.6 2.1 175.2 2.3
1977-78 185.8 5.2 179.2 2.3
1978-79 185.8 — 179.5 0.2
1979-80 217.6 17.1 215.8 20.2
1980-81 257.5 18.2 257.3 19.2
1981-82 100.0 9.3 270.6 5.2
1982-83 104.9 4.9 103.5 3.0
1983-84 112.8 7.5 109.8 6.0
1984-85 120.1 6.5 117.5 7.0
1985-86 125.4 4.4 124.5 6.0
1986-87 132.7 5.8 129.2 3.0
1987-88 143.5 8.1 138.5 7.0
1988-89 154.2 7.5 151.5 9.4
1989-90 165.7 7.5 168.6 11.3
1990-91 182.7 10.3 182.8 8.4
1991-92 207.8 13.7 203.4 11.3
1992-93 228.7 10.1 225.6 10.9
(Base : 1993-94=100)
1993-94 100.0 — 100.0 —
1994-95 112.6 12.6 112.3 12.3
1995-96 121.6 8.0 121.9 8.5
1996-97 127.2 4.6 124.4 2.1
1997-98 132.8 4.4 128.0 2.9
1998-99 140.7 5.9 133.6 4.4
1999-00 145.3 3.3 137.2 2.7
2000-01 155.7 7.2 141.7 3.3
2001-02 161.3 3.6 144.3 1.8
2002-03 166.8 3.4 148.1 2.6
2003-04 175.9 5.5 156.5 5.7
2004-05 187.3 6.5 166.3 6.3
2005-06 195.6 4.4 171.4 3.1
2006-07 206.2 5.4 179.0 4.4
2007-08 215.7 4.6 187.8 4.9

Note : Figures since 1971 - 72 to 1980-81 are based on old Base Year i.e

1970-71 = 100, and 1982-83 to 1992-93 are based on base year 1981-82=100

Source : Office of the Economic Adviser, Ministry of Commerce & Industry.

258
CHAPTER - XII

TABLE 12.3
ALL INDIA CONSUMER PRICE INDEX FOR INDUSTRIAL WORKERS
(AVERAGE OF MONTHS)

Year Wise (Base : 1960 = 100 , 1982=100 and 2001=100)

Calendar Year Base Year General Index Financial Year Base Year General Index

1 2 3 4 5 6
I - Base Year 1960 =100
1970 1960=100 184 1970-71 1960=100 186
1973 1960=100 236 1973-74 1960=100 250
1974 1960=100 304 1974-75 1960=100 317
1975 1960=100 321 1975-76 1960=100 313
1976 1960=100 296 1976-77 1960=100 301
1977 1960=100 321 1977-78 1960=100 324
1978 1960=100 329 1978-79 1960=100 331
1979 1960=100 350 1979-80 1960=100 360
1980 1960=100 390 1980-81 1960=100 401
1981 1960=100 441 1981-82 1960=100 451
1982 1960=100 475 1982-83 1960=100 486
1983 1960=100 532 1983-84 1960=100 547
1984 1960=100 576 1984-85 1960=100 582
1985 1960=100 608 1985-96 1960=100 620
1986 1960=100 661 1986-87 1960=100 674
1987 1960=100 719 1987-88 1960=100 736
1988* 1960=100 775 1988-89 1960=100 786
II - Base Year 1982 =100
1989 1982=100 171 1989-90 1982=100 173
1990 1982=100 186 1990-91 1982=100 193
1991 1982=100 212 1991-92 1982=100 219
1992 1982=100 237 1992-93 1982=100 240
1993 1982=100 252 1993-94 1982=100 258
1994 1982=100 278 1994-95 1982=100 284
1995 1982=100 306 1995-96 1982=100 313
1996 1982=100 334 1996-97 1982=100 342
1997 1982=100 358 1997-98 1982=100 366
1998 1982=100 405 1998-99 1982=100 414
1999 1982=100 424 1999-00 1982=100 428
2000 1982=100 441 2000-01 1982=100 444
2001 1982=100 458 2001-02 1982=100 463
2002 1982=100 477 2002-03 1982=100 482
2003 1982=100 496 2003-04 1982=100 500
2004 1982=100 514 2004-05 1982=100 520
2005 1982=100 536 2005-06* 1982=100 540@
III - Base Year 2001 =100
2006 2001=100 123 2006-07 2001=100 125
2007 2001=100 131 2007-08 2001=100 133
(ii) @Average Based on 9 Months only @ . Average Based on 6 Months only

Source : Labour Bureau, Government of India.

259
 TRENDS IN PRICES

TABLE 12.4
CONSUMER PRICE INDEX NUMBERS (GENERAL) FOR INDUSTRIAL WORKERS -
ALL INDIA AND SELECTED CENTRES

(Base : 1982=100 ) (Base : 2001=100 )

Centres 1991 2001 2002 2003 2004 2005 2006 2007

1 2 3 4 5 6 7 8 9
1 Ajmer 217 452 472 487 510 537 122 129
2 Ahmedabad 218 460 476 488 507 519 120 129
3 Alwaye 195 458 478 490 515 542 125 131
4 Amritsar 204 403 418 431 452 492 130 139
5 Bangalore 204 438 452 476 501 533 125 136
6 Bhopal 218 488 510 525 537 561 127 135
7 Mumbai 226 528 558 583 604 611 126 134
8 Kolkata 218 492 530 541 565 587 121 132
9 Delhi 218 529 550 570 598 648 122 128
10 Hyderabad 203 438 468 496 512 532 116 123
11 Indore 222 470 488 511 521 537 122 131
12 Jamshedpur 204 419 431 456 479 508 126 132
13 Kanpur 222 447 459 471 489 520 125 132
14 Chennai 208 487 513 533 549 565 118 124
15 Srinagar 202 520 547 574 599 632 118 125
16 Yamunagar 201 428 443 462 486 521 127 133

All India 212 458 477 496 514 536 123 131

@ = New Series Base: 2001=100 has been introduced w.e.f. the indices of January, 2006 replacing the
earlier serieson base: 1982=100

Source : Labour Bureau, Shimla.

260
CHAPTER - XII

TABLE 12.5
CONSUMER PRICE INDEX NUMBERS (GENERAL) FOR AGRICULTURE LABOURERS
(AVERAGE OF MONTHS)

Agriculture Year Index Calender Year Index

(July-June)
1 2 3 4
1970-71 192 1970 194
1974-75 368 1974 332
1975-76 317 1975 360
1976-77 302 1976 290
1977-78 323 1977 320
1978-79 317 1978 319
1979-80 360 1979 333
1980-81 409 1980 383
1981-82 448 1981 436
1982-83 481 1982 458
1983-84 522 1983 511
1984-85 525 1984 521
1985-86 555 1985 538
1986-87 578 1986 567
1987-88 650 1987 608
1988-89 724 1988 690
1989-90 752 1989 745
1990-91 830 1990 774
1991-92 1007 1991 913
1992-93 1073 1992 1070
1993-94 1147 1993 1086
1994-95 1283 1994 1215
1995-96 240@ 1995 1347*
1996-97 260 1996 249
1997-98 269 1997 262
1998-99 299 1998 287
1999-00 309 1999 304
2000-01 304 2000 307
2001-02 311 2001 307
2002-03 323 2002 315
2003-04 332 2003 328
2004-05 342 2004 337
2005-06 358 2005 348
2006-07 388 2006 372
2007-08 417 2007 402

@ = New Series of CPI Numbers for Agriculture Labourers on Base 1986-87=100

released w.e.f November, 1995. Linking factor for Agri. Labourers is 5.89. Average based
on 8 months I.e. November, 1995 to June, 1996.
*: Average based on 10 months I.e. from January, 1995 to October, 1995

Source: Labour Bureau, Shimla.

261
 TABLE 12.6
AVERAGE CONSUMER PRICE INDEX NUMBERS FOR AGRICULTURE LABOURERS

262
(Base : 1986 - 87 =100)

SI. State 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08

1 2 3 4 5 6 7 8 9

1 Andhra Pradesh 317 328 342 347 357 371 401 430
2 Assam 322 320 330 343 347 362 388 417
3 Bihar 282 290 299 311 324 347 384 411
4 Gujarat 314 320 332 339 350 369 403 424
5 Haryana 313 322 329 341 359 376 403 447
6 Himanchal Pradesh 292 298 308 321 325 343 367 376
7 Jammu & Kashmir 326 331 344 345 348 359 392 413
8 Karnataka 302 309 325 341 340 341 367 406
9 Kerala 321 321 330 342 351 356 374 403
10 Madhya Pradesh 310 310 318 318 330 352 388 412
11 Maharashtra 303 306 321 335 350 368 402 432
12 Manipur 316 304 300 308 310 328 337 367
13 Meghalaya 346 351 343 350 360 382 410 439
14 Orissa 304 300 298 314 320 334 365 400
15 Punjab 316 326 331 343 355 380 417 448
16 Rajasthan 311 309 325 323 346 377 413 439
17 Tamil Nadu 299 311 344 349 347 355 371 403
18 Tripura 324 322 325 326 337 351 383 407
19 Uttar Pradesh 301 312 323 331 343 371 408 433
20 West Bengal 292 303 305 321 333 342 365 395

All India 304 311 323 332 342 358 388 417

Note : New Series of Consumer Index Number for Agricultural Labourers (Base 1986-87=100)
Released with effect from November, 1995 replacing the old series on Base : 1960-61=100
@ Average Based on 8 month i.e. from November, 95 to June,96.

Source : Labour Bureau, Shimla

TRENDS IN PRICES
CHAPTER - XII

TABLE 12.7
AVERAGE CONSUMER PRICE INDEX NUMBERS FOR
URBAN NON-MANUAL EMPLOYEES

Calendar Year General Index Financial Year General Index

1 2 3 4
(Base : 1960=100)
1970 173 1970-71 174
1971 178 1971-72 180
1972 189 1972-73 192
1973 212 1973-74 221
1974 259 1974-75 270
1975 279 1975-76 277
1976 273 1976-77 277
1977 292 1977-78 296
1978 304 1978-79 306
1979 321 1979-80 330
1980 359 1980-81 369
1981 403 1981-82 413
1982 437 1982-83 446
1983 480 1983-84 492
1984 524 1984-85 532
1985 558 1985-86 568
1986 602 1986-87 613
1987 653 1987-88 668
Base :-1984-85=100
1988 133 1988-89 136
1989 143 1989-90 145
1990 156 1990-91 161
1991 177 1991-92 183
1992 199 1992-93 202
1993 212 1993-94 216
1994 231 1994-95 237
1995 254 1995-96 259
1996 276 1996-97 283
1997 297 1997-98 302
1998 330 1998-99 337
1999 348 1999-00 352
2000 366 2000-01 371
2001 386 2001-02 390
2002 402 2002-03 405
2003 416 2003-04 420
2004 432 2004-05 436
2005 451 2005-06 456
2006 478 2006-07 486
2007 509 2007-08 515

Source : Central Statistical Organisation

263
 TRENDS IN PRICES

TABLE 12.8
AVERAGE CONSUMER PRICE INDEX NUMBERS FOR URBAN NON-MANUAL EMPLOYEES
ALL INDIA AND SELECTED CENTRES

(Base Year:- 1984-85=100)

Centre 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08

All India 371 390 405 420 436 456 486 515

1. Mumbai 375 395 406 415 434 450 478 504

2. Delhi 381 398 412 425 446 472 499 521

3. Kolkota 344 355 364 382 398 416 439 476

4. Chennai 420 456 486 502 520 543 569 605

5. Hydrabad 383 410 427 440 459 488 526 560

6. Banglore 389 412 424 442 456 480 513 546

7. Lucknow 342 364 383 401 421 438 465 484

8. Ahmedabad 337 350 361 371 385 400 426 449

9. Jaipur 371 388 403 411 427 443 477 515

10. Patna 344 359 366 382 396 418 451 484

11. Srinagar 393 403 403 419 430 449 475 513

12. Trivandrum 362 384 406 426 449 479 507 535

13. Cuttak 365 379 390 412 428 447 479 507

14. Bhopal 361 375 386 391 394 417 458 482

15. Chandigarh 445 464 482 525 561 605 637 665

16. Shilong 382 406 422 435 445 466 499 565

Source: Central Statistical Organisation.

264