India launches new WPI and PPI series with base year 2022-23

The Ministry of Commerce & Industry has introduced a revised Wholesale Price Index (WPI) series and new Producer Price Indices (PPI) with the base year 2022-23. This update replaces the previous WPI series based on 2011-12 and aligns with global practices to improve inflation tracking and economic analysis.

The new WPI series includes 957 items, up from 697 in the previous series, and incorporates renewable energy sources like solar and wind under the 'Electricity' group. Additionally, crude petroleum and natural gas have been shifted to the 'Fuel and Power' category for better alignment. The methodology for calculating weights has been updated to use Gross Value of Output (GVO), reflecting domestic production more accurately.

Producer Price Indices (PPIs) have been introduced for outputs, inputs, and services. Service PPIs cover seven sectors, including banking, insurance, and telecom, and are compiled quarterly. The transition from WPI to PPI aligns with IMF recommendations and global standards, offering a clearer picture of price movements and inflation impacts.

Provisional estimates for May 2026 show WPI inflation at 9.68% year-on-year, with indices for primary articles, fuel and power, and manufactured products rising compared to April 2026. The release schedule for these indices has been standardized, with monthly and quarterly updates available on the Office of Economic Adviser's web portal.

This shift aims to provide stakeholders with improved tools for economic analysis and inflation tracking, ensuring a smoother transition to globally recognized practices over the next five years.

Key Points
- New WPI and PPI series launched with base year 2022-23.
- WPI now includes 957 items, up from 697 in the previous series.
- Renewable energy sources added under 'Electricity' group.
- Transition from WPI to PPI aligns with IMF recommendations.
- Provisional WPI inflation for May 2026 stands at 9.68% YoY.

FAQ

What is the base year for the new WPI and PPI series?
The base year for the new WPI and PPI series is 2022-23.

What sectors are covered under Service PPI?
Service PPI covers banking, insurance, telecom, railways, air travel, pension fund management, and securities transactions.