Govt to replace WPI with Producer Price Index, new series from June 15

Business To Business, New Delhi, 2^nd June, 2026:  The Indian government is set to undertake a major overhaul of its inflation measurement framework by gradually replacing the Wholesale Price Index (WPI) with a more comprehensive Producer Price Index (PPI) over the next five years.
What is changing?
According to Praveen Mahto, the Department for Promotion of Industry and Internal Trade will:

• Release a revised WPI series with 2022-23 as the new base year on June 15.
• Replace the current WPI series, which uses 2011-12 as the base year.
• Simultaneously launch a new Producer Price Index (PPI) framework.

1. Output PPI
   • Measures prices received by producers for their output.
   • Reflects changes in selling prices at the factory or producer level.
2. Trial Input PPI
   • Measures changes in the cost of inputs used in production.
   • Helps track cost pressures faced by manufacturers.
3. Services PPI
   • Measures price changes in service-sector activities.
   • Addresses a major limitation of WPI, which primarily focuses on goods.

• It largely tracks wholesale goods prices.
• It does not adequately capture the growing services sector.
• It provides limited information about input costs faced by producers.
• It may not fully reflect modern production and supply-chain structures.

• Better measurement of producer-level inflation.
• More detailed sectoral analysis.
• Improved understanding of cost pressures in the economy.
• Stronger policy inputs for government and businesses.

• The index reflects current production patterns.
• New industries and products are better represented.
• Weightages align more closely with the modern economy.

• Monetary policy decisions by the Reserve Bank of India.
• Industrial policy.
• Business planning and pricing strategies.
• Economic forecasting.