The wholesale price index measures the changes in the price of goods sold by wholesalers.
It has a direct affect on consumer inflation.
The RBI watches inflation closely and tailors it's policy review around it.
After sliding down in Dec and Jan, the WPI has just raised it's head ever so slightly.
This needs to be watched as the RBI had signaled in the last meeting that their focus would be growth instead of inflation.The growth charts seem to be doing well as was pointed by the IIP numbers.
If you put both together, a rate cut at the meeting tomorrow looks difficult.