Why do you trade? : Hot Topic

# Wholesale Price Index (WPI)

Search Dictionary

## Definition of 'Wholesale Price Index (WPI)'

A Wholesale Price Index (WPI) is the price of a representative basket of wholesale goods. Some countries use WPI changes as a baseline measure of inflation. However, most countries now report a Producer Price Index (PPI) instead.

Calculation of Wholesale Price Index

The WPI consists of over 2,400 commodities. The indicator tracks the price movement of each commodity individually. Based on this individual movement, the index is determined through an average calculation.

Below are the various methods used to calculated the WPI:

Laspeyres Formula (also know as the relative method): This is the weighted arithmetic mean based on the fixed value-based weights for the base period.

Ten-Day Price Index: This calculation takes "sample prices" with high intra-month fluctuations and selects them to be surveyed every ten days through phone. Using the data retrieved by this procedure and with the assumption that other non-surveyed "sample prices" remain unchanged, a "ten-day price index" is compiled and released.

Calculation Method: Monthly price indexes are compiled by calculating the simple arithmetic mean of three ten-day “sample prices” in the month.

Calculation of Wholesale Price Index

The WPI consists of over 2,400 commodities. The indicator tracks the price movement of each commodity individually. Based on this individual movement, the index is determined through an average calculation.

Below are the various methods used to calculated the WPI:

Laspeyres Formula (also know as the relative method): This is the weighted arithmetic mean based on the fixed value-based weights for the base period.

Ten-Day Price Index: This calculation takes "sample prices" with high intra-month fluctuations and selects them to be surveyed every ten days through phone. Using the data retrieved by this procedure and with the assumption that other non-surveyed "sample prices" remain unchanged, a "ten-day price index" is compiled and released.

Calculation Method: Monthly price indexes are compiled by calculating the simple arithmetic mean of three ten-day “sample prices” in the month.

Do you have a trading or investing definition for our dictionary? Click the Create Definition link to add your own definition. You will earn 150 bonus reputation points for each definition that is accepted.

Is this definition wrong? Let us know by posting to the forum and we will correct it.

Emini Day Trading /
Daily Notes /
Forecast /
Economic Events /
Trading Indicators /
Search /
Terms and Conditions /
Disclaimer /
Books /
Online Books /
Site Map /
Contact /
Privacy Policy /
Links /
About /
Day Trading Forum /
Investment Calculators /
Pivot Point Calculator /
Market Profile Generator /
Fibonacci Calculator /
Mailing List /
Advertise Here /
Articles /
Financial Terms /
Brokers /
Software /
Holidays /
Stock Split Calendar /
Features /
Mortgage Calculator /
User Pages /
Donate

Copyright © 2004-2016, MyPivots. All rights reserved.

Copyright © 2004-2016, MyPivots. All rights reserved.