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Informist, Tuesday, Jun. 2, 2026

 

--Industry dept: Completed WPI base year revision to FY23 from FY12

--Industry dept: Completed compilation of Producer Price Indices

--Industry dept: To release new WPI series with FY23 base year on Jun 15

--Industry dept: To release output, input, services PPIs on Jun 15

--Industry dept: Weight of primary articles, fuel & power higher in new WPI

--Industry dept: Weight of manufactured items lower in new WPI series

--Industry dept: New WPI to track 957 items vs 697 items in old series

 

NEW DELHI – The government will release the revised Wholesale Price Index and new Producer Price Indices, which will help provide a more accurate picture of factory-gate prices, on Jun. 15, the Department for Promotion of Industry and Internal Trade said Monday. The new WPI series will use 2022-23 (Apr-Mar) as the base year, replacing FY12.

 

The department will release the new WPI for May on Jun. 15. WPI inflation rose to a 42-month high of 8.30% in April, driven by a sharp jump in fuel and power inflation caused by the war in West Asia.

 

The department will also release the Producer Price Indices— the Output Producer Price Index, Input Producer Price Index, and Services Producer Price Index. The services PPI will cover seven services — banking, securities transactions, management of pension funds, insurance, railways, air (passenger), and telecom — for the quarter ended March.

 

In January 2025, the government set up a working group to revise the WPI and compile a new Producer Price Index. The current WPI series was adopted in 2017, when the base year changed from FY05. The WPI revision follows similar exercises carried out in 2026 for India's key economic indicators: Gross Domestic Product, Consumer Price Index, and the Index of Industrial Production.

 

In line with practices adopted by advanced economies and the recommendations of the International Monetary Fund (IMF), there is a growing need for India to transition  from WPI to the Producer Price Index, the industry department said in a report. The availability of output and input PPI gives a "better understanding of the price movements of output items vis--vis input  items being used in an industry," the department said. It will also explain how input inflation experienced by producers is passed through to output.  In addition, the availability of both price indices enables the calculation of 'double deflation' when estimating  real GDP. 

 

DATA SOURCES AND WEIGHTS

 In the revised WPI, the weights of 'primary articles' and 'fuel and power' have increased to 22.76% and 14.11%, respectively, from 22.62% and 13.15%. The weight of 'manufactured items' has fallen to 63.13% in the new series from 64.23%. 

 

The department said that prices of primary articles increased about 77?tween FY23 and FY12, whereas prices of manufactured items rose about 43% in the same period. "This has led to a reduction in the weights of 'manufactured items'," the department said. In the new series, 'crude oil and natural gas' is part of the 'fuel and power' category, instead of the 'primary articles' category.

 

The new WPI will track 957 items, up from 697 items in the FY12 series. The increase in the number of items will mainly be in the manufactured items group.

 

The output Producer Price Index will have four broad groups: 'agriculture, forestry, and fishing' with 22.16% weight; 'mining and quarrying' with 3.42% weight, 'manufactured items' with 69.93% weight, and electricity with 4.49% weight.

 

In the case of the Producer Price Index for services, no weights have been assigned since the seven services do not cover the entire service sector, the department said. The indices of the seven services would be released without their weights.

 

The industry department will track data on the new WPI and the output PPI from a range of sources, including central government departments, state governments, companies, and surveyed factories. For the services PPI, data will be sourced from the Reserve Bank of India, the Securities and Exchange Board of India, the Pension Fund Regulatory and Development Authority, insurance companies, the railways ministry, and airline companies.  End

 

Reported by Shubham Rana

Edited by Saji George Titus

 

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