<p>India has been measuring <code>inflation</code> since the 1960s, but it wasn't until 2012 that the government started publishing data on <code>CPI inflation</code>. Before 2012, the government only published data on <code>WPI inflation</code>.</p>
<p><code>WPI inflation</code> is a measure of <code>inflation</code> for the <code>wholesale</code> market, which is where businesses buy goods and services from each other. <code>CPI inflation</code> is a measure of <code>inflation</code> for the <code>consumer market</code>, which is where households buy goods and services for their own use.</p>
<p>The government decided to switch from <code>WPI to CPI</code> inflation because CPI inflation is a better measure of inflation for the <code>average household</code>. WPI inflation can be volatile, and it can be affected by factors that don't directly affect households, such as changes in the price of oil. CPI inflation is more stable, and it's a better measure of the cost of living for households.</p>
<p><code>CPI-IW</code> is a different type of CPI that measures inflation for industrial workers. It's calculated using a different basket of goods and services than the regular CPI, and it's weighted differently. <code>CPI-IW i</code>s used by the government to set <code>minimum wages</code> for industrial workers.</p>
<ul>
<li><code>WPI</code> Inflation   -- &gt; Inflation for the <code>wholesale</code> market   -- &gt; 1960s</li>
<li><code>CPI</code> Inflation   --&gt; Inflation for the <code>consumer</code> market --&gt; 2012</li>
<li><code>CPI-IW</code> Inflation --&gt; Inflation for <code>industrial</code> workers --&gt; 1970s</li>
</ul>
<p>The inflation data on <code>Macrotrends</code> is for <code>CPI inflation, not WPI inflation.</code> The data is sourced from the <code>Reserve Bank of India (RBI), </code>which  publishes data on <code>CPI inflation</code> on a monthly basis.</p>
<p>RBI uses the <code>CPI</code> to set <code>monetary policy</code>, and the government uses the CPI to index government benefits, such as <code>pensions</code> and <code>welfare payments</code>.</p>
<p>RBI did not publish <code>CPI</code> data before 2012 .  CPI data on Macrotrends is for CPI-IW, not CPI. <code>CPI-IW</code> data on Macrotrends is the <code>Labor</code> Bureau, Government of India. It does not explicitly state but that is the  case in fact.  Data on Macrotrends is weighted differently than the CPI. The CPI is weighted using a <code>Laspeyres formula</code>, while the CPI-IW is weighted using a <code>Paasche formula.</code></p>

CC BY-SA 4.0
2023-06-18T01:42:27.003Z
Yes, I understand this - my question is what is the inflation which is mentioned in https://www.macrotrends.net/countries/IND/india/inflation-rate-cpi - the page says "Inflation as measured by the **consumer price index** reflects the annual percentage change in the cost to the average consumer of acquiring a basket of goods and services that may be fixed or changed at specified intervals, such as yearly" - so it's not WPI? Where did they get it from? They haven't specifically said it's CPI-IW?
user93353
CC BY-SA 4.0
2023-06-18T02:22:33.577Z
got it. Updated the answer see the addendum
user1874594
CC BY-SA 4.0
2023-06-18T02:41:45.360Z
Did RBI publish CPI data before 2012? The NDTV article says that India published CPI for the first time in 2012. So how does Macrotrends have data from 1960? Is it CPI-IW - is there any source for this?
user93353
CC BY-SA 4.0
2023-06-18T05:18:14.333Z
CPI data on Macrotrends is for CPI-IW, not CPI see more  in update # 2
user1874594
CC BY-SA 4.0
2023-06-18T05:22:06.190Z
Thank you very much - is there any source that Macrotrends uses CPI-IW & not CPI?
user93353
CC BY-SA 4.0
2023-06-18T06:59:20.180Z
it's already there in my answer "CPI-IW data on Macrotrends is the Labor Bureau, Government of India. It does not explicitly"
user1874594
CC BY-SA 4.0
2023-06-18T08:30:31.600Z
How dd you figure out that the CPI on macrotrensds is CPI-IW & from the Labour Bureau?
user93353
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2023-06-18T08:59:08.043Z
CPI-IW data is the forte of labor bureau
user1874594
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2023-06-18T09:00:13.247Z
Yes, but how do you know macrotrends is using that?
user93353
CC BY-SA 4.0
2023-06-18T09:12:54.623Z
Macrotrends  provides a disclaimer on its website that states that the CPI data on its website is from the Labour Bureau. The disclaimer states:

"The consumer price index (CPI) data on this page is from the Labour Bureau, Government of India. The CPI is a measure of the change in prices of a basket of goods and services consumed by urban households."
user1874594
CC BY-SA 4.0
2023-06-18T09:13:25.437Z
The disclaimer is located at the bottom of the page, under the "Data Sources" section. It is as follows:
user1874594
CC BY-SA 4.0
2023-06-18T09:18:21.167Z
The Data Source at the bottom of the page says "World Bank".
user93353
CC BY-SA 4.0
2023-06-19T02:49:40.890Z
and the word bank source is CPI https://data.worldbank.org/indicator/FP.CPI.TOTL.ZG?locations=IN and CPI is dept of Labor therefore macrotrends is dept of labor. Beyond this is not poss good luck. Caste your ✔ for answers you find useful !
user1874594
CC BY-SA 4.0
2023-06-19T03:17:27.470Z
I know macrotrends & WB are CPI - that is written on both. I am looking for a source that it is CPI-IW & not regular CPI. My question says that Macrotrends is CPI.
user93353
CC BY-SA 4.0
2023-06-19T04:25:10.893Z
https://www.rbi.org.in/Scripts/PublicationsView.aspx?id=2905 compares the CPI and CPI-IW in India CPI is weighted using a Laspeyres formula, while the CPI-IW is weighted using a Paasche formula. based on the comparison of this you can infer its CPI  IW not CPI
user1874594
CC BY-SA 4.0
2023-06-19T05:32:15.070Z
Your RBI link gives interest rates - can you correct the link?
user93353
CC BY-SA 4.0
2023-06-19T05:39:27.380Z
I found the right link - https://rbi.org.in/scripts/PublicationsView.aspx?id=16482 - however, the figures from this page don't seem to exactly match the figures on Macrotrends
user93353
CC BY-SA 4.0
2023-06-18T01:38:55.513Z
2023-06-18T05:17:47.460Z
2023-06-18T05:17:47.460Z
user1874594
<p>I am getting conflicting reports about this.</p>
<p><a href="https://www.ndtv.com/business/indias-first-ever-cpi-based-inflation-rate-at-7-65-in-january-2012-298172" rel="nofollow noreferrer">India's first-ever CPI-based inflation rate at 7.65% in January 2012
</a></p>
<blockquote>
<p>India’s <strong>first ever annual</strong> inflation rate, based on the consumer price index (CPI), was 7.65 per cent for the month of January 2012, government data relased on Tuesday showed.</p>
</blockquote>
<p>This seems to say that they started measuring CPI inflation only in Jan 2012</p>
<p>However, I also found this from 2009,</p>
<p><a href="https://www.imf.org/External/AM/2009/imfc/statement/eng/ind.pdf" rel="nofollow noreferrer">International Monetary and Financial Committee: Statement by India's Finance Minister</a></p>
<blockquote>
<p>annual average CPI inflation is likely to remain at around 6.5 percent in 2009-10.</p>
</blockquote>
<p>Macrotrends also gives CPI inflation for India from the 1960s - <a href="https://www.macrotrends.net/countries/IND/india/inflation-rate-cpi" rel="nofollow noreferrer">https://www.macrotrends.net/countries/IND/india/inflation-rate-cpi</a></p>
<p>If India didn't measure CPI before 2012, how does Macrotrend have data from 1960</p>
<p>Another confusing data point is here from 2010</p>
<p><a href="https://economictimes.indiatimes.com/news/economy/indicators/inflation-in-india-highest-amongst-major-developing-nations/articleshow/6266840.cms" rel="nofollow noreferrer">Inflation in India highest amongst major developing nations</a></p>
<blockquote>
<p>In June, 2010, India's inflation based on the <strong>Consumer Price Index for Industrial Workers (CPI-IW)</strong> stood at 13.7 per cent, much higher than that of Indonesia, Brazil, China and Russia.</p>
</blockquote>
<p>This however says CPI-IW instead of just CPI which adds another confusion - is CPI-IW different from CPI &amp; how different?</p>
<p>So when did India actually start measuring CPI inflation?</p>

<inflation>
When exactly did India change from using WPI to CPI for measuring Inflation?
user93353
# When exactly did India change from using WPI to CPI for measuring Inflation?

(Asked by: username_0 on 2023-06-17)

I am getting conflicting reports about this.

[India's first-ever CPI-based inflation rate at 7.65% in January 2012](https://www.ndtv.com/business/indias-first-ever-cpi-based-inflation-rate-at-7-65-in-january-2012-298172)

> India’s **first ever annual** inflation rate, based on the consumer price index (CPI), was 7.65 per cent for the month of January 2012, government data relased on Tuesday showed.

This seems to say that they started measuring CPI inflation only in Jan 2012

However, I also found this from 2009,

[International Monetary and Financial Committee: Statement by India's Finance Minister](https://www.imf.org/External/AM/2009/imfc/statement/eng/ind.pdf)

> annual average CPI inflation is likely to remain at around 6.5 percent in 2009-10.

Macrotrends also gives CPI inflation for India from the 1960s - <https://www.macrotrends.net/countries/IND/india/inflation-rate-cpi>

If India didn't measure CPI before 2012, how does Macrotrend have data from 1960

Another confusing data point is here from 2010

[Inflation in India highest amongst major developing nations](https://economictimes.indiatimes.com/news/economy/indicators/inflation-in-india-highest-amongst-major-developing-nations/articleshow/6266840.cms)

> In June, 2010, India's inflation based on the **Consumer Price Index for Industrial Workers (CPI-IW)** stood at 13.7 per cent, much higher than that of Indonesia, Brazil, China and Russia.

This however says CPI-IW instead of just CPI which adds another confusion - is CPI-IW different from CPI & how different?

So when did India actually start measuring CPI inflation?

**Tags:** inflation


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## 1 answers

### Answer by username_1 on 2023-06-18. Score: 1

India has been measuring `inflation` since the 1960s, but it wasn't until 2012 that the government started publishing data on `CPI inflation`. Before 2012, the government only published data on `WPI inflation`.

`WPI inflation` is a measure of `inflation` for the `wholesale` market, which is where businesses buy goods and services from each other. `CPI inflation` is a measure of `inflation` for the `consumer market`, which is where households buy goods and services for their own use.

The government decided to switch from `WPI to CPI` inflation because CPI inflation is a better measure of inflation for the `average household`. WPI inflation can be volatile, and it can be affected by factors that don't directly affect households, such as changes in the price of oil. CPI inflation is more stable, and it's a better measure of the cost of living for households.

`CPI-IW` is a different type of CPI that measures inflation for industrial workers. It's calculated using a different basket of goods and services than the regular CPI, and it's weighted differently. `CPI-IW i`s used by the government to set `minimum wages` for industrial workers.

* `WPI` Inflation -- > Inflation for the `wholesale` market -- > 1960s
* `CPI` Inflation --> Inflation for the `consumer` market --> 2012
* `CPI-IW` Inflation --> Inflation for `industrial` workers --> 1970s

The inflation data on `Macrotrends` is for `CPI inflation, not WPI inflation.` The data is sourced from the `Reserve Bank of India (RBI),` which publishes data on `CPI inflation` on a monthly basis.

RBI uses the `CPI` to set `monetary policy`, and the government uses the CPI to index government benefits, such as `pensions` and `welfare payments`.

RBI did not publish `CPI` data before 2012 . CPI data on Macrotrends is for CPI-IW, not CPI. `CPI-IW` data on Macrotrends is the `Labor` Bureau, Government of India. It does not explicitly state but that is the case in fact. Data on Macrotrends is weighted differently than the CPI. The CPI is weighted using a `Laspeyres formula`, while the CPI-IW is weighted using a `Paasche formula.`

> **Comments:**
> **username_0**: Yes, I understand this - my question is what is the inflation which is mentioned in https://www.macrotrends.net/countries/IND/india/inflation-rate-cpi - the page says "Inflation as measured by the **consumer price index** reflects the annual percentage change in the cost to the average consumer of acquiring a basket of goods and services that may be fixed or changed at specified intervals, such as yearly" - so it's not WPI? Where did they get it from? They haven't specifically said it's CPI-IW?  
> **username_1**: got it. Updated the answer see the addendum  
> **username_0**: Did RBI publish CPI data before 2012? The NDTV article says that India published CPI for the first time in 2012. So how does Macrotrends have data from 1960? Is it CPI-IW - is there any source for this?  
> **username_1**: CPI data on Macrotrends is for CPI-IW, not CPI see more  in update # 2  
> **username_0**: Thank you very much - is there any source that Macrotrends uses CPI-IW & not CPI?  
> **username_1**: it's already there in my answer "CPI-IW data on Macrotrends is the Labor Bureau, Government of India. It does not explicitly"  
> **username_0**: How dd you figure out that the CPI on macrotrensds is CPI-IW & from the Labour Bureau?  
> **username_1**: CPI-IW data is the forte of labor bureau  
> **username_0**: Yes, but how do you know macrotrends is using that?  
> **username_1**: Macrotrends  provides a disclaimer on its website that states that the CPI data on its website is from the Labour Bureau. The disclaimer states:  "The consumer price index (CPI) data on this page is from the Labour Bureau, Government of India. The CPI is a measure of the change in prices of a basket of goods and services consumed by urban households."  
> **username_1**: The disclaimer is located at the bottom of the page, under the "Data Sources" section. It is as follows:  
> **username_0**: The Data Source at the bottom of the page says "World Bank".  
> **username_1**: and the word bank source is CPI https://data.worldbank.org/indicator/FP.CPI.TOTL.ZG?locations=IN and CPI is dept of Labor therefore macrotrends is dept of labor. Beyond this is not poss good luck. Caste your ✔ for answers you find useful !  
> **username_0**: I know macrotrends & WB are CPI - that is written on both. I am looking for a source that it is CPI-IW & not regular CPI. My question says that Macrotrends is CPI.  
> **username_1**: https://www.rbi.org.in/Scripts/PublicationsView.aspx?id=2905 compares the CPI and CPI-IW in India CPI is weighted using a Laspeyres formula, while the CPI-IW is weighted using a Paasche formula. based on the comparison of this you can infer its CPI  IW not CPI  
> **username_0**: Your RBI link gives interest rates - can you correct the link?  
> **username_0**: I found the right link - https://rbi.org.in/scripts/PublicationsView.aspx?id=16482 - however, the figures from this page don't seem to exactly match the figures on Macrotrends  

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