India to Introduce Producer Price Index and Revamped Wholesale Price Index on June 15

India is set to introduce a new price measurement framework with the launch of the Producer Price Index (PPI) on 15 June 2026.  

The rollout will take place alongside a revised Wholesale Price Index (WPI) series based on the 2022-23 base year, replacing the current 2011-12 benchmark. 

New Framework to Track Producer and Service Prices 

Unlike the existing system, the Producer Price Index will be released through 3 separate indicators rather than a single consolidated measure. These include the Output PPI, Input PPI and Services PPI. 

The Output PPI will track prices received by producers for goods sold in the market. For example, it will capture the price a refinery receives when selling refined petrol.  

The Input PPI, meanwhile, will monitor the prices producers pay for raw materials, such as the cost of crude oil purchased by refiners. 

A separate Services PPI, being introduced for the first time, will measure price movements across service industries.  

Initially, it will cover 7 sectors: banking, securities transactions, insurance, management of pension funds, railways, air passenger services, and telecom. The coverage is expected to expand over time. 

Transition Period Planned Before Any Full Shift 

The Commerce Ministry plans to publish the WPI alongside the three PPI indices for 5 years. During this period, policymakers will assess whether the new framework captures price trends more effectively before deciding on a complete transition from WPI to PPI. 

Officials have indicated that the Input PPI will remain under evaluation for the first 2-3 years to determine whether changes are required in its composition. The objective is to ensure that the index accurately reflects producer input costs before it becomes a permanent component of the framework. 

The Output PPI and WPI will be released every month, while the Services PPI will be published on a quarterly basis. 

Revamped WPI to Include New Energy Sources 

The revised WPI series will expand significantly, with the number of tracked items increasing to 957 from the current 697. The updated basket will include solar energy, wind energy and nuclear electricity, reflecting changes in India's energy landscape. 

Another notable change is the reclassification of crude petroleum and natural gas. Both commodities will move from the Primary Articles category to Fuel & Power, placing them alongside coal, electricity and petroleum products. 

Weightages within the index will also be adjusted. The share of Primary Articles will increase to 22.76 from 22.62, while Fuel & Power will rise to 14.11 from 13.15. The weight assigned to Manufactured Products will decline to 63.13 from 64.23. 

Global Alignment and Data Availability 

According to the ministry, the move aligns India's price measurement practices with international standards followed by advanced economies and recommendations from the International Monetary Fund (IMF). 

Officials believe that publishing both Input and Output PPIs will provide a clearer understanding of how changes in raw material costs influence the prices of finished goods. The first release on 15 June will include provisional data for May 2026, along with a back series covering 37 months from April 2023 to April 2026. 

Read More: India’s Exports Jump to $43.56 Billion in April 2026 Amid Double-Digit Growth! 

Conclusion 

The introduction of the Producer Price Index marks a significant change in India's inflation measurement framework. Along with the revamped WPI series, the new system is expected to offer a more detailed view of producer costs, output pricing and service-sector price movements.   

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