Ministry of Statistics and Programme Implementation (MoSPI) to Use Producer Price Index (PPI) for GDP Deflation

Key facts

• The Ministry of Statistics and Programme Implementation (MoSPI) will use the output Producer Price Index (PPI) for deflation in annual and quarterly GDP data.
• The updated estimates may be released along with the GDP estimates for the April-June quarter of 2026-27.
• The output PPI will replace the Wholesale Price Index (WPI) as the deflator wherever possible.
• The government revised the GDP series earlier this year, updating the base year to 2022-23 from 2011-12.
• In the new GDP series, single deflation has been eliminated and double deflation adopted in sectors like manufacturing and agriculture.
• The Department for Promotion of Industry and Internal Trade (DPIIT) released the output, input, and services PPIs for the first time in June.
• WPI inflation in June stood at 9.87% while output PPI inflation was 9.57%.
• The statistics ministry will release the back series data based on the new GDP series by the end of the year.