𝗜𝗻𝗱𝗶𝗮 𝗟𝗮𝘂𝗻𝗰𝗵𝗲𝘀 𝗣𝗿𝗼𝗱𝘂𝗰𝗲𝗿 𝗣𝗿𝗶𝗰𝗲 𝗜𝗻𝗱𝗲𝘅

𝗜𝗻𝗱𝗶𝗮 𝗟𝗮𝘂𝗻𝗰𝗵𝗲𝘀 𝗣𝗿𝗼𝗱𝘂𝗰𝗲𝗿 𝗣𝗿𝗶𝗰𝗲 𝗜𝗻𝗱𝗲𝘅

India released its first producer price index (PPI) data for goods and services on Monday. The government will phase out the wholesale price index (WPI) over the next five years. This change follows recommendations from the International Monetary Fund (IMF).

Key facts regarding the new index:

• The All-India Output PPI for all commodities reached 109.6 in May 2026.
• The April 2026 figure stood at 108.6.
• The All-India trial Input PPI for manufacturing was 104.9 in May 2026.
• Output PPI inflation rose to 9.4% in May from 8.1% in April.
• Wholesale inflation increased to 9.68% in May from 8.26% in April.
• The revised base year for both WPI and PPI is 2022-23.
• The index covers 957 items.

The Commerce and Industry Ministry released both output and input PPIs. Output PPI tracks the price of goods and services produced. Input PPI tracks the price of items used by industries to create products. This data helps show how producer costs affect final prices.

Weights for Output PPI (Goods):

• Manufactured items: 69.93%
• Agriculture, forestry, and fishing: 22.16%
• Electricity: 4.49%
• Mining and quarrying: 3.42%

The first phase of Service PPI includes banking, securities, insurance, pension fund management, railways, air passenger transport, and telecom services. Future phases will include more services using GSTN data and price surveys.

The transition follows a report by a working group led by Ramesh Chand. The report states the PPI provides an accurate measure of price changes from the producer perspective. This makes the data useful for GDP compilation.

Source: The Times of India