Commerce and Industry Ministry releases Producer Price Index (PPI) data to replace Wholesale Price Index (WPI)

Key facts

• The Commerce and Industry Ministry has released the Producer Price Index (PPI) data for both goods and services for the first time, intending to phase out the Wholesale Price Index (WPI) within five years.
• The revised base year for both WPI and PPI has been updated to 2022-23 from 2011-12, covering a total of 957 items.
• Manufactured items hold the highest weight of 69.93 per cent in the Output PPI (Goods), followed by agriculture, forestry, and fishing at 22.16 per cent, electricity at 4.49 per cent, and mining and quarrying at 3.42 per cent.
• The first phase of the Service PPI covers seven services: banking, securities transaction, insurance, management of pension funds, railways, air (passenger), and telecom, using data from the Goods and Services Tax Network (GSTN).
• The transition follows the recommendations of a working group established on 30 December 2024, under the chairmanship of former NITI Aayog member Ramesh Chand.