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Informist, Monday, Aug. 24, 2026

 

NEW DELHI – The producer price inflation in financial services rose at a quicker pace in the June quarter compared with the previous quarter, the data released Monday by the Ministry of Commerce and Industry showed. Overall, inflation in four of seven services tracked in the producer price indices rose in the June quarter on a sequential basis.

 

Inflation in the banking services contribution rose to 6.90% in Apr-Jun, from 3.30% a quarter ago. The management of pension funds services price index rose 5.20% in the June quarter, from (-)0.76% in Jan-Mar.

 

The ministry released the maiden Service Producer Price Indices for the March quarter in June. Service Producer Price Indices, with 2022-23 (Apr-Mar) as base year, measure average change in the prices received by the producer on production of a service. This index is also compiled on the basis of Basic Price.

 

In the first phase, banking, securities transactions, insurance, management of pension funds, railways, air passenger, and telecommunication as services have been covered under the Service Producer Price Indices. These seven services are not assigned weights as they do not cover the entire services sector. 

 

Among seven services, air passenger service price reported the highest inflation, at 31.94%, in the June quarter. However, the rate of inflation cannot be compared due to unavailability of the data for preceding quarters.

 

Inflation in insurance service rose to 0.98% on year in the June quarter, from 0.68% a quarter ago. Railway service inflation rose to 1.27% in the first quarter of FY27, from 1.18% in the March quarter. In this, railway freight services inflation rose to 0.10% last quarter from 0.0% in Jan-Mar while inflation in the railway passenger service remained flat on quarter at 3.50% in the June quarter.

 

On other hand, the securities transaction service and banking service reported deflation in the June quarter. Securities transaction inflation was (-)1.32% in the last quarter, compared with 0.55% in the March quarter. Inflation in the banking service was (-)3.35% against (-)4.10% in Jan-Mar.

 

Banking service contribution, pension fund management, insurance, and railways services saw the swiftest pace of inflation in the last one year.  End

 

Reported by Shweta

Edited by Akul Nishant Akhoury

 

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