Government to Replace WPI with Producer Price Index, New Series from June 15
The Centre plans to phase out the Wholesale Price Index (WPI) over the next five years, replacing it with a more detailed Producer Price Index (PPI) starting June 15. The Department for Promotion of Industry and Internal Trade (DPIIT) will release a revised WPI series with a new base year 2022-23, alongside the new PPI series. The PPI will include three indices: Output PPI, Trial Input PPI, and Services PPI, offering a more realistic assessment of inflationary trends by covering output, input, and services prices. This transition aligns with global best practices and IMF recommendations, providing better insights into price movements and inflation transmission.
Key Points
- The Indian government will phase out the Wholesale Price Index (WPI) over five years, replacing it with the Producer Price Index (PPI).
- The DPIIT will release a new WPI series with base year 2022-23 and the new PPI series from June 15.
- The PPI will comprise three indices: Output PPI, Trial Input PPI, and Services PPI, providing a comprehensive view of inflation.
- This transition aligns with global best practices and recommendations from the International Monetary Fund (IMF).
- The PPI aims to offer a more realistic assessment of inflationary trends by capturing price movements of output and input items, including services.
Exam Facts
- WPI to be replaced by PPI over five years.
- New WPI series base year: 2022-23 (replacing 2011-12).
- New series release date: June 15.
- PPI indices: Output PPI, Trial Input PPI, Services PPI.
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