India to Launch Producer Price Index, New Wholesale Price Index Series on June 15

Commerce Ministry to Release New Price Index on June 15

The Indian commerce ministry will release a new price index, called the Producer Price Index (PPI), on June 15 to measure factory-gate costs. The PPI will be released with the revamped Wholesale Price Index (WPI), which will have a base year of 2022-23.

According to ministry officials, the PPI data will not be released on a consolidated basis but through three indices: Input PPI, Output PPI, and Services PPI. The Services PPI will be released quarterly, while the other two will be published every month.

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The ministry will publish the WPI and the three PPI indices parallelly for five years. After that, a final decision will be taken on whether the PPI will fully replace the WPI. "We cannot say for sure if that will happen, as we have to assess whether or not the accurate price trends are being captured by the PPI," an official said.

The PPI is expected to provide a more accurate picture of inflation and price trends, which will help policymakers make informed decisions. The release of the PPI is a significant development in India's inflation measurement and will provide valuable insights into the country's economic trends.