Government Releases Producer Price Index Data

India released Producer Price Index data for goods and services on 15 June 2026. The government also introduced a revised Wholesale Price Index series with a 2022-23 base year and announced a five-year transition towards the Producer Price Index framework.

Producer Price Index in India

The Producer Price Index measures price changes at the producer level before goods and services reach final consumers. India’s new framework includes three indices: Output PPI, Trial Input PPI, and Service PPI. Output PPI captures prices received by domestic producers, while Trial Input PPI covers the manufacturing sector on an experimental basis.

Service PPI and Sector Coverage

The Service PPI initially covers seven sectors. These sectors are banking, securities transactions, insurance, management of pension funds, railways, air passenger transport, and telecom. The Service PPI is scheduled for quarterly release.

Wholesale Price Index Revision

The revised Wholesale Price Index series uses 2022-23 as the new base year, replacing the earlier 2011-12 base year. The item basket has increased from 697 items to 957 items. The revised basket includes new energy sources such as solar and wind.

Transition from WPI to PPI

The Wholesale Price Index will continue to be published in parallel with the Producer Price Index for five years. After this transition period, the Wholesale Price Index will be phased out. The change aligns India’s inflation measurement framework with International Monetary Fund recommendations and global statistical practice.

Inflation Data for May 2026

India’s wholesale price inflation for May 2026 stood at 9.68% year-on-year. Fuel and power recorded 30.33% inflation, and manufactured products recorded 7.48% inflation. The All India Output PPI for all commodities stood at 109.6 in May 2026, compared with 108.6 in April 2026.

Important Facts for Exams

• The Wholesale Price Index is a price index used in India to track price changes at the wholesale level.
• The Producer Price Index is used in many countries to measure price changes from the producer’s perspective.
• India’s revised WPI series now has 957 items in the basket.
• The Service PPI includes banking, insurance, railways, air passenger transport, and telecom.

Current Status of the New Indexes

The trial Input PPI for the manufacturing sector stood at 104.9 in May 2026. The new PPI framework and the revised WPI series were both released on 15 June 2026.