Economy

Inflation in India: CPI vs WPI and Types

Inflation is a sustained rise in the general price level. India measures it mainly through the Consumer Price Index (CPI), published by the National Statistical Office under the Ministry of Statistics, and the Wholesale Price Index (WPI), published by the Office of the Economic Adviser. The RBI targets CPI inflation.

Last reviewed 2026-10-15

CPI versus WPI

CPI tracks prices paid by consumers for a basket of goods and services and is the benchmark for monetary policy.
WPI tracks prices at the wholesale level and does not include services.
The inflation rate is the percentage change in the index over the same period a year earlier.

Terms to know

Demand-pull inflation: too much money chasing too few goods.
Cost-push inflation: rising input costs raise prices.
Deflation: a fall in the general price level.
Disinflation: a fall in the rate of inflation, with prices still rising.
Stagflation: high inflation with slow growth and high unemployment.
Reflation: policy action to lift prices after deflation.

Frequently asked questions

Which index does the RBI target?

The Consumer Price Index (CPI).

Who publishes WPI?

The Office of the Economic Adviser, Department for Promotion of Industry and Internal Trade.

What is stagflation?

High inflation combined with slow economic growth and high unemployment.