Consider the following statement about wholesale Price index (WPI) I. It captures the price movement extensively and is, therefore, taken as an indicator of inflation. II. The office of the Economic adviser (OEA) is entrusted with the function of compilation and publication of the weekly wholesale price index number in India. Which of the statements given above is/are cocrrect?

The correct answer is Option 1.

Statement I is correct: The Wholesale Price Index (WPI) measures the changes in the prices of goods sold and traded in bulk by wholesale entities to other businesses. It captures price movements at the first stage of transaction in the domestic market, making it a vital macroeconomic indicator for tracking inflationary pressures in the production and manufacturing sectors.

Statement II is incorrect: While the Office of the Economic Adviser (OEA), under the Ministry of Commerce and Industry, is indeed responsible for compiling and releasing the WPI, the frequency is no longer weekly. Since 2012, the WPI for "All Commodities" is released on a monthly basis. Only the price indices for "Primary Articles" and "Fuel & Power" were historically tracked weekly, but the official headline index is now a monthly publication.

Therefore, only the first statement accurately describes the nature of WPI as an inflation indicator, while the second statement fails on the technicality of its publication frequency.