Glossary term
Wholesale Price Index (WPI)
The Wholesale Price Index was the former U.S. name for what became the Producer Price Index, a measure of prices received by domestic producers.
Updated
Read time
What Is the Wholesale Price Index?
The Wholesale Price Index, or WPI, was the former U.S. name for the price index program now known as the Producer Price Index, or PPI. The U.S. Bureau of Labor Statistics says the program used the Wholesale Price Index name from its start in 1902 until 1978, when it was renamed the Producer Price Index.
In U.S. context, WPI is therefore mainly a historical label. The modern U.S. series investors, businesses, and policymakers usually follow is PPI. Some other countries may still use wholesale price index terminology, so readers should check the country and methodology before comparing data.
Key Takeaways
- WPI was the old U.S. name for what is now the Producer Price Index.
- BLS renamed the program in 1978.
- The name change reflected a better theoretical description of output prices.
- PPI measures prices received by domestic producers for their output.
- WPI and PPI data can be used in inflation analysis, contract escalation, and business planning.
Why the Name Changed
BLS explains that the Wholesale Price Index name was misleading because the index did not actually measure price change only in wholesale markets. The rename to Producer Price Index better reflected the program's focus on output prices received by producers.
The change did not discontinue the data series. It changed terminology and analytical emphasis. That continuity matters when analysts look at long historical price data.
How It Differs From CPI
PPI and the Consumer Price Index both measure price change, but from different perspectives. CPI measures prices paid by consumers. PPI measures prices received by producers. Producer prices can sometimes signal upstream cost pressure before those costs show up in consumer prices, but the pass-through is not automatic.
Businesses use PPI-type data in contracts, budgeting, procurement, and margin analysis. Investors use it as one input for inflation expectations, interest-rate views, sector margins, and monetary policy interpretation.
Reading WPI References Today
If an old report mentions WPI in the United States, it may be referring to the historical predecessor of PPI. If a current international report mentions WPI, it may refer to a country's own wholesale price index. The label alone is not enough; methodology, coverage, and publication authority matter.
That is especially important in cross-country inflation analysis. A wholesale price index in one country may not match U.S. PPI coverage, weights, or conceptual design.
The Bottom Line
The Wholesale Price Index was the former U.S. name for the Producer Price Index program. In modern U.S. analysis, PPI is the active reference, while WPI is best understood as a historical label or an international term whose meaning depends on the country publishing it.