Budget in graphics: Wholesale price inflation

Wholesale price inflation: Inflation is the increase in the prices of goods and services in the economy across a finite period of time. The wholesale price index measures the wholesale price increase across a select basket of commodities. The Reserve Bank of India uses the WPI to decide its monetary policy. If inflation increases, the RBI holds its key bank rates which curbs consumer spending, in an attempt to rein in any further increase in prices.