In India, inflation rate is WPI based. WPI is an economy-wide index covering 435 commodities. Weights of the commodities are derived based on the value of quantities traded in the domestic market. It is currently the most comprehensive measure of economy-wide inflation available with high frequency. The weights assigned to foodgrains, vegetables and milk in the commodities basket of WPI (1993-94= 100) is 5.01 per cent, 1.46 per cent and 4.37 per cent, respectively.