The Government of India has updated the Wholesale Price Index (WPI) base year from 2011-12 to 2022-23 and introduced the Producer Price Index (PPI). Released on 15 June 2026 by the Office of the Economic Adviser (DPIIT), this framework enhances accuracy in tracking domestic market price shifts.
Key Updates to WPI Series
- Expanded Basket: The commodity count has increased from 697 to 957 items.
- Energy Integration: Renewable energy (solar, wind, nuclear) is now included in the ‘Electricity’ subgroup.
- Reclassification: Crude petroleum and natural gas have moved from ‘Primary Articles’ to the ‘Fuel and Power’ category.
- Methodological Shift: Adoption of Gross Value of Output weights (replacing Net Traded Value) and short-term chain-based price formulation to reduce volatility bias.
Introduction of Producer Price Index (PPI)
The new PPI provides a detailed view of cost pass-throughs:
- Output PPI: Tracks basic prices received by producers for final goods (monthly).
- Input PPI: Tracks costs of manufacturing inputs (monthly, trial basis).
- Service PPI: Tracks costs across seven sectors including banking, insurance, telecom, and transportation (quarterly).
IASPOINT Booster Facts
- Administrative Body: Compiled by the Office of the Economic Adviser, DPIIT, Ministry of Commerce and Industry.
- Policy Anchor: The RBI utilizes the Consumer Price Index (Combined) for inflation targeting, while WPI monitors B2B transactions.
- Service Coverage: The Service PPI is a landmark inclusion, as the legacy WPI was limited to merchandise goods only.
- Transition: A five-year dual-tracking period is in place to allow stakeholders to adjust legal and financial contracts.