India launches revised WPI base year 2022-23 and begins Producer Price Index phase-in

India has launched its first Producer Price Index (PPI) data for goods and services, marking a shift from the Wholesale Price Index (WPI) which will be phased out over five years. This move aligns with international practices and aims to provide a more accurate measure of price changes from a producer's perspective, aiding in National Accounts compilation.

New Delhi: The government on Monday released Producer Price Index (PPI) data for goods and services for the first time, marking a major change in how price movements in the economy will be measured.The Commerce and Industry Ministry said the new index will gradually replace the Wholesale Price Index (WPI), and WPI data will be discontinued over the next five years.The move is in line with global practices followed by advanced economies and recommendations made by the International Monetary Fund (IMF).India To Launch New WPI Inflation Series, Producer Price Indices From June 15; Base Year Revised To 2022-23Why PPI Is Important?According to the ministry, PPI provides a clearer picture of price changes faced by producers.Unlike WPI, which mainly tracks wholesale prices, PPI measures both the prices producers receive for their products and the prices they pay for inputs used in production.This helps policymakers understand how rising costs of raw materials and other inputs affect the final prices of goods and services.WPI Inflation Rises To 2.13% In February, Up From 1.81% In January: Govt DataLatest PPI NumbersThe all-India output PPI for all commodities stood at 109.6 in May 2026, compared with 108.6 in April 2026.The output PPI inflation rate rose to 9.4 percent in May 2026 from 8.1 percent in April 2026.The government also released the trial input PPI for the manufacturing sector. It stood at 104.9 in May 2026 and is currently being published on an experimental basis to gather feedback and improve data quality.New Base Year and Wider CoverageThe revised base year for both WPI and PPI is 2022-23.The new series covers 957 items across different sectors of the economy.For goods, manufactured products carry the highest weight of 69.93 percent, followed by agriculture, forestry and fishing at 22.16 percent, electricity at 4.49 percent, and mining and quarrying at 3.42 percent.India’s Retail Inflation Rises To 3.21% In February, Up From 2.74% In January Under New CPI SeriesServices Included in First PhaseThe first phase of Service PPI covers seven sectors: banking, securities transactions, insurance, pension fund management, railways, air passenger services and telecom.The ministry said more services will be added in the next phase using data collected from surveys and the Goods and Services Tax Network (GSTN).Roadmap for TransitionThe shift follows recommendations made by a working group led by former NITI Aayog member Ramesh Chand.The group said PPI offers a more accurate measure of producer-level inflation and will improve GDP calculations and estimates of real economic growth. The government believes the transition will bring India's inflation measurement system closer to global standards.

New Delhi: Wholesale Inflation At 9.68 percent In May, Government Launches New WPI Series With 2022-23 Base Year And Expanded BasketThe Ministry of Commerce and Industry on Monday launched a revised Wholesale Price Index (WPI) series with 2022-23 as the new base year.The new series replaces the existing 2011-12 base year and marks an important step in modernising how wholesale price movements are measured in India.India To Launch New WPI Inflation Series, Producer Price Indices From June 15; Base Year Revised To 2022-23The government said the revision is part of a broader effort to improve producer price measurement and bring it closer to global standards.According to the ministry, India’s wholesale inflation stood at 9.68 percent in May on a year-on-year basis. The WPI for all commodities was recorded at 109.9 during the month.Among major categories, inflation in primary articles increased to 4.99 percent.Fuel and power recorded the sharpest rise, with inflation surging to nearly 30 percent. Inflation in manufactured products also remained elevated at 7.48 percent.The ministry said mineral oils, crude petroleum and natural gas, chemicals and chemical products, and basic metals were among the biggest contributors to the increase in wholesale prices.WPI Inflation Jumps To 8.3% In April, Rising Fuel And Metal Prices Push Wholesale Costs HigherMeanwhile, the WPI Food Index registered inflation of 4.49 percent in May.Along with the revised WPI, the government also released new series of Output Producer Price Index (OPPI), Trial Input Producer Price Index (IPPI), and Service Producer Price Indices (PPI) covering seven service sectors.The ministry said these indices are in line with international best practices and recommendations of the International Monetary Fund (IMF).To ensure a smooth transition, the WPI series will continue to be published for the next five years while users gradually shift to the broader Producer Price Index framework.The revised WPI basket now covers 957 items compared to 697 items earlier.For the first time, renewable energy sources such as solar and wind power, along with nuclear electricity, have been included in the index basket.The government has also reorganised the energy category by shifting crude petroleum and natural gas from primary articles to the fuel and power group.WPI Inflation Rises To 2.13% In February, Up From 1.81% In January: Govt DataThe new methodology uses Gross Value of Output (GVO) for assigning weights and includes updated techniques for handling price data.The new Output PPI for all commodities stood at 109.6 in May, while the Trial Input PPI for the manufacturing sector was recorded at 104.9.

Government unveils revised wholesale price index with 2022-23 as the base year and introduces producer price indices.