India to Launch Producer Price Index in 2026

India will launch a new Producer Price Index (PPI) series and a revised Wholesale Price Index (WPI) series on 15 June 2026 with base year 2022-23. The WPI and the PPI will run in parallel for five years before the WPI is discontinued.

Wholesale Price Index and Producer Price Index

The Wholesale Price Index measures price changes at the wholesale level for goods. The Producer Price Index measures prices received by producers and covers output prices, input costs, and service-sector inflation.

Structure of the New PPI System

The new PPI framework will have three indices. These are Output PPI, Input PPI, and Service PPI. The Input PPI will begin as a trial for manufacturing, and the Service PPI will cover seven sectors, including Banking, Insurance, Railways, and Telecom.

Revised Wholesale Price Index Series

The revised WPI series will expand its commodity basket from 697 items to 957 items. The new basket will include energy sources such as solar power and wind power.

Release Pattern and Base Year

The WPI and Output PPI will be released every month. The Service PPI will be compiled and released every quarter, and initial back-series data will also be provided.

Important Facts for Exams

• The base year for both the revised WPI and the new PPI series is 2022-23.
• The transition from WPI to PPI will last five years.
• The International Monetary Fund has recommended the use of producer-based price indices in many economies.
• The Service PPI will cover sectors such as Banking, Insurance, Railways, and Telecom.

Exam-Relevant Context

Price indices are used in macroeconomic analysis, inflation tracking, and national accounts. India already uses the Consumer Price Index for retail inflation and the WPI for wholesale inflation.