Wholesale inflation refers to the rate at which the prices of goods sold in bulk and traded between organizations instead of consumers change over time. It is measured using a Wholesale Price Index (WPI), which is an inflation indicator that measures the overall change in producer prices over time. The WPI measures the change in the overall price of goods before they are sold at retail, including the prices charged by manufacturers and wholesalers. The index is set at 100 for its base period and is calculated based on subsequent price changes for the aggregate output of goods. The WPI is an important measure of inflation in some economies, including India and the United States, where it is known as the Producer Price Index (PPI) . The PPI includes product category indexes distinguishing between intermediate and finished goods. Wholesale prices have been rising more slowly than consumer prices, raising hopes that inflation may continue to ease as producer costs make.