Index Numbers of Wholesale Price in India for the Month of February, 2026 (Base Year: 2011-12)

1. At a Glance

• WPI measures average change in wholesale (bulk transaction) prices of goods at the producer/factory-gate level; compiled with base year 2011-12=100 [1][2].
• For UPSC: WPI is the policy-relevant index for deflating GDP and tracking producer-side inflation; it complements (does not substitute) CPI for monetary policy [2].
• February 2026 reading: headline WPI inflation = 2.13% (provisional) YoY, up from 1.81% in Jan-26 and 0.96% in Dec-25 — indicating a mild firming trend [1].

2. Why in the News

• PIB release dated 16 March 2026 by the Ministry of Commerce & Industry put out the February 2026 WPI numbers [1].
• Inflation print of 2.13% YoY in Feb-26 — driven primarily by price rises in "other manufacturing", basic metals, non-food articles, food articles and textiles" [1].
• Continued third consecutive monthly acceleration in headline WPI (0.96 → 1.81 → 2.13%) [1].

3. Background & Evolution

• WPI compilation in India dates back to 1942 (weekly index, base year 1939).
• Successive base-year revisions: 1952-53, 1961-62, 1970-71, 1981-82, 1993-94, 2004-05, and the current 2011-12 [2].
• Current 2011-12 series launched in May 2017 following recommendations of the Ramesh Chand Working Group; items raised from 676 to 697, price quotations from 5,482 to 8,331; indirect taxes excluded to align with international practice (producer-price concept) [2].
• Food Index (combining food articles from Primary Articles + manufactured food products) introduced as a supplementary indicator in the 2011-12 series [2].
• Government has constituted a new Working Group to revise the base year from 2011-12 to 2022-23 [2].

4. Core Static Facts

• Compiling agency: Office of the Economic Adviser (OEA), Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce & Industry [2].
• Release schedule: Provisional WPI released on 14th of every month (next working day if holiday) with a 2-week lag; finalised after 10 weeks [2].
• Base year: 2011-12 = 100 [1][2].
• Items in basket: 697; price quotations: 8,331 [2].
• Major group weights (2011-12 series): Primary Articles 22.62%, Fuel & Power 13.15%, Manufactured Products 64.23% [1].
• February 2026 index & inflation (provisional) [1]:
• All Commodities: Index 158.2, Inflation 2.13%.

• Primary Articles (wt. 22.62%): Index 192.9, Inflation 3.27%.

• Indirect taxes (GST, excise) excluded from WPI prices (producer-price concept) [2].

5. Multi-Dimensional Analysis

• Economic — Rising WPI in Feb-26 (2.13%) signals firming producer-side inflation; impacts GDP deflator, corporate margins, and input-cost pass-through to CPI [1]. Primary articles inflation at 3.27% indicates farm-gate price firmness [1].
• Administrative — Compilation by DPIIT's OEA, not by MoSPI (which handles CPI); a frequent source of confusion [2].
• Methodological — WPI is not the headline inflation target for RBI (the Monetary Policy Framework Agreement, 2015 anchors policy to CPI-Combined, target 4% ±2%); WPI remains key for WPI-linked indexation in contracts and as GDP deflator input.
• Statistical reform — Base-year shift to 2022-23 underway via Working Group to capture structural changes (e-commerce, services, new manufacturing) [2].

6. Recent Developments (last 12-18 months)

• 16 Mar 2026: PIB releases Feb-26 WPI at 2.13% (provisional) [1].
• Three-month trend (Dec-25 → Jan-26 → Feb-26): 0.96% → 1.81% → 2.13% — accelerating [1].
• Working Group constituted to revise WPI base year from 2011-12 to 2022-23 [2].

7. Prelims Hooks

• WPI is compiled by the Office of the Economic Adviser, DPIIT, Ministry of Commerce & Industry — NOT MoSPI [2].
• Current WPI base year: 2011-12 [1][2].
• 2011-12 series launched May 2017 on recommendation of the Ramesh Chand Committee [2].
• Number of items in 2011-12 basket: 697; price quotations: 8,331 [2].
• Indirect taxes are excluded from prices in the 2011-12 series (earlier series included them) [2].
• Weights: Manufactured Products 64.23%, Primary Articles 22.62%, Fuel & Power 13.15% [1].
• Food Index (combining primary food + manufactured food) introduced as a supplementary index in 2011-12 series [2].
• Provisional WPI is released on 14th of each month with 2-week lag; finalised after 10 weeks [2].
• Feb-26 headline WPI inflation: 2.13% (provisional) [1].
• Feb-26 Primary Articles inflation: 3.27% [1].
• Proposed next base year: 2022-23 [2].
• CPI (used by RBI for inflation targeting) is compiled by NSO/MoSPI — distinct from WPI [2].

8. Mains Relevance

• GS-III: Indian Economy — Issues relating to planning, mobilization of resources, growth, inflation.
• Possible stems:
• "Discuss the divergence between WPI and CPI inflation in India and its implications for monetary policy."
• "Examine the rationale for revising the WPI base year to 2022-23. What methodological challenges does base-year revision entail?"
• "Why does India retain WPI alongside CPI and a proposed Producer Price Index (PPI)?"

9. Related Topics to Study Next

• CPI (Combined, Rural, Urban) — RBI's headline inflation target; MoSPI-compiled.
• Producer Price Index (PPI) — proposed by Saumitra Chaudhuri / B.N. Goldar Working Groups to eventually replace WPI.
• GDP deflator — uses WPI heavily for goods sector.
• Monetary Policy Framework Agreement, 2015 & FIT regime — 4% ±2% CPI target.
• Ramesh Chand Committee (2017) — designed current WPI series.
• Index of Industrial Production (IIP) — also from MoSPI; often paired with WPI in analysis.
• Core inflation — non-food, non-fuel; relevant for both CPI and WPI.

10. Common Errors / Trap Areas

• Wrong ministry: WPI ≠ MoSPI. It is DPIIT (Ministry of Commerce & Industry) [2].
• Base year confusion: Current is 2011-12, not 2004-05; next proposed is 2022-23 (not 2017-18) [2].
• RBI's target index is CPI-C, not WPI — frequent MCQ trap.
• Indirect taxes: The 2011-12 series excludes them; older series included them.
• Services: WPI covers only goods; services are excluded (a key limitation cited for moving to PPI).