Overview of Canada’s Wholesale Price Index
Canada’s wholesale price index hit 112 in 2019 and was the same as the previous year in 2019. The wholesale price index of Canada has been increasing in the last decades, with the index rising from 107 points in 2011 to 112 points in 2019, keeping the base year 2010 at 100. Between 2010 to 2019, the wholesale price index in Canada was highest in 2018 and 2019 at 112 and was lowest in 2011 at 107.
Wholesale Price Index Overview
The Wholesale price index (WPI) is “the price of a representative basket of goods. The wholesale price index refers to a mix of agricultural and industrial goods at various stages of production and distribution, including import duties. The Wholesale Price Index tracks changes in wholesalers' selling prices. The impact on consumer inflation increases as this number rises. The index is generated using consecutive price changes for the total output of items and has a base value of 100.
While the WPI focuses on the wholesale level, the concept of CPI focuses on the retail level. The two most useful and widely used metrics used to assess market inflation in a country are the wholesale price index and the consumer price index.
Key Elements Influenced by the Wholesale Price Index
Fiscal and Monetary Policies:
Both monetary and fiscal policies are used to regulate economic activity. Therefore, changes to these policies have an impact on the economy of the nation by changing the flow and supply of commodities via the economy.
Rising Inflation:
The inflation rates at both the retail and wholesale levels reflect high food, fuel, and commodity costs as well as supply-side bottlenecks. Because of inflation, living expenses increase with time. If inflation is high enough, the economy suffers. Price increase could be a sign of an economy that is growing at a high rate. When consumers purchase more than they require to avoid tomorrow's higher prices, the demand for goods and services increases.
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