Wholesale Price Index - WPI

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DEFINITION of 'Wholesale Price Index - WPI'

An index that measures and tracks the changes in price of goods in the stages before the retail level. Wholesale price indexes (WPIs) report monthly to show the average price changes of goods sold in bulk, and they are a group of the indicators that follow growth in the economy.

Although some countries still use the WPIs as a measure of inflation, many countries, including the United States, use the producer price index (PPI) instead.

BREAKING DOWN 'Wholesale Price Index - WPI'

The wholesale price indexes used in Indonesia were originally set up in 1996; the base year was reset in April of 2006 with a WPI value of 2000. Index values in Indonesia are commonly expressed as 2000=100.

As an example, the Indonesian Agriculture WPI in February of 2008 was 5140, but was expressed in the recent tables released by Statistics Indonesia as 257 (calculated as 5140/[2000/100]=257).

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