India Replaces WPI with PPI
Analysis based on 21 articles · First reported Jun 02, 2026 · Last updated Jun 03, 2026
The transition from WPI to PPI in India is expected to provide a more accurate and comprehensive picture of inflation, covering both goods and services. This will improve economic analysis and decision-making for financial market participants, as it aligns India's statistical systems with global best practices and IMF recommendations. Companies using WPI in price escalation clauses will need to adapt to the new PPI framework over the next five years, potentially impacting long-term contracts and financial planning.
India is undertaking a significant overhaul of its inflation measurement framework by gradually phasing out the Wholesale Price Index (WPI) and introducing a comprehensive Producer Price Index (PPI) over the next five years. The India — Ministry of Trade and Industry, through its India — Department for Promotion of Industry and Internal Trade (DPIIT), will release the revised WPI series with a new base year of 2022-23 on June 15, replacing the existing 2011-12 series. Simultaneously, new Output Producer Price Index (OPPI), Trial Input Producer Price Index (IPPI), and Service Producer Price Index (Service PPI) for seven services will be launched. This move, announced by Praveen Mahto, Principal Economic Adviser, aligns with global best practices and recommendations from the International Monetary Fund. The WPI will continue to be published for five years to allow users, particularly those with price escalation clauses in contracts, to transition to the PPI. The new WPI series will expand its commodity basket from 697 to 957 items, including solar, wind, and nuclear electricity, and reclassify crude petroleum and natural gas. The Ministry of Finance's Department of Expenditure will issue a circular to guide users on this transition.
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