WPI

The finance ministry has nudged all ministries and departments to move to Producer Price Index (PPI), from the current Wholesale Price Index (WPI), for rate escalation and adjustment clauses in future government procurement contracts. The Department of Expenditure, in a communication to all ministries and departments, said that PPI is a more internationally accepted index compared to WPI used in government contracts to define price escalation. For the first time, the commerce ministry has started issuing monthly PPI data for both goods and services since June to better reflect price movement at the producer's level, thus paving the way for phasing out wholesale price inflation numbers in the next five years. "Ministries/Departments are encouraged to adopt Producer Price Index (PPI) in place of Wholesale Price Index (WPI) in all price escalation clauses of future contracts, once PPI becomes available," the expenditure department said in an office memorandum dated July 13, which was .

WPI Food Index inflation rose to 6.65% in July from 6.14% in June, while fuel and power inflation eased to 20.05% from 27.41%

After more than two decades in the making, India's Producer Price Index is beginning to reshape industrial output, GDP measurement and the country's broader statistical framework

The government also released India's first Producer Price Index under the new series, with producer inflation tracking wholesale prices closely

As India shifts to a new WPI base year, the outgoing series reflects a turbulent period marked by deep deflation, record inflation and sharp fuel price swings

The revised WPI expands the basket from 697 to 957 items, and improves the methodology to prepare weightings by using gross value of output instead of net traded value

The new PPI framework is being built on supply and use tables, which officials said makes it more consistent with national accounts and reduces double counting

The government will gradually phase out the Wholesale Price Index (WPI) and introduce a detailed Producer Price Index (PPI) covering output, input and services prices, in a bid to offer a more realistic assessment of inflationary trends in the economy. Addressing media on the subject, Praveen Mahto, Principal Economic Adviser in the Commerce and Industry Ministry, also said that the Department for Promotion of Industry and Internal Trade (DPIIT) will release the revised series of WPI with new base year 2022-23 on June 15, which would replace the existing series with base year 2011-12. In addition, the department would release a new series of Output Producer Price Index (OPPI), Trial Input Producer Price Index (IPPI), and Service Producer Price Index (Service PPI) of seven services - Banking, Securities Transaction, Insurance, Management of Pension Funds, Railways, Air (Passenger), and Telecom with base year 2022-23 on June 15. "Considering the wide usage of WPI in price escalation .

The revised wholesale price index will adopt 2022-23 as the base year, while the Producer Price Index is set to be introduced as a new inflation measure

Sharp rise in fuel and energy prices amid the West Asia crisis pushes wholesale inflation to its highest level since October 2022

The fuel and power category recorded the highest inflation among major groups at 24.71 per cent in April, compared with 1.05 per cent in March

Drug pricing regulator permits marginal MRP increase for NLEM medicines in line with wholesale price index, offering relief to manufacturers facing higher costs

Committee asks DPIIT to align WPI with revised GDP, CPI and IIP series, and roll out producer price indices to improve price measurement and data accuracy

Factory-gate inflation rises to an 11-month high in February, driven by higher prices of primary goods and manufactured products, while fuel and power remain in deflation

If global crude averages $110-115 per barrel in FY27, India's net oil imports could rise by $56-64 billion annually, worsening the current account deficit and fuelling inflation

Under previous methods, low nominal ‌GDP growth alongside low wholesale inflation created discrepancies by translating into higher real growth rates

India's wholesale price inflation rose to an eight-month high of 0.83 per cent in December, ending a two-month deflationary spell as food prices stabilised and core inflation firmed up

November 2025 WPI-based inflation: The negative rate of inflation in November is primarily due to a decrease in prices of food articles, mineral oils, crude petroleum and natural gas

October 2025 WPI-based inflation: The negative rate of inflation is primarily due to a decrease in prices of food articles, crude petroleum & natural gas, electricity, and mineral oils

This moderation was led by a fall in the prices of primary articles (-3.32 per cent) and the continued deflationary trend in the fuel and power segment