India Launches New WPI Series with 2022-23 Base Year

India Launches New WPI and Producer Price Indices with 2022-23 Base Year

The Office of Economic Adviser, DPIIT, Ministry of Commerce & Industry has released a comprehensive revision of India's price measurement framework with the introduction of a new Wholesale Price Index (WPI) series with base year 2022-23, replacing the previous 2011-12 series. Simultaneously, the department is launching new series of Output Producer Price Index (OPPI), Trial Input Producer Price Index (IPPI), and Service Producer Price Index (Service PPI) for seven services including Banking, Securities Transaction, Insurance, Management of Pension Funds, Railways, Air (Passenger), and Telecom with the same base year.

Transition Plan and Global Alignment

The WPI will be maintained for five years from release date alongside the PPI series to provide sufficient transition time for users who currently employ WPI in price escalation clauses, after which it will be discontinued. This transition aligns with global best practices adopted by advanced economies and follows International Monetary Fund (IMF) recommendations. The availability of both Output PPI and Input PPI provides better understanding of price movements between output produced and inputs used in industries, illustrating how input inflation is transmitted to output prices.

Key Methodological Improvements in New WPI Series

The new WPI series incorporates several significant methodological enhancements: the total number of items has increased from 697 to 957; new and renewable energy sources including solar, wind, and nuclear electricity have been added under the Electricity group; crude petroleum and natural gas has been shifted from Primary Articles to Fuel and Power group for better alignment; weights are now derived using Gross Value of Output (GVO) instead of Net Traded Value for better representation of domestic production; elementary indices are compiled using short-term formulation method; missing price data is imputed using Targeted Mean Imputation instead of Carry Forward method.

Linking Factors Between Series

A linking factor has been computed as the ratio of geometric means of twelve-month indices of old and new series for financial year 2024-25: All Commodities (1.53), Primary Articles (1.71), Fuel and Power (1.65), and Manufactured Products (1.44). The Office of Economic Adviser cautions users about interpreting and comparing indices across the two series due to significant compositional changes at granular levels and does not prescribe specific linking methodologies.

May 2026 WPI Inflation Data

The provisional WPI for May 2026 shows significant inflationary pressures. All Commodities index stands at 109.9 with YoY inflation of 9.68%, up from 8.26% in April 2026. Major group breakdown shows Primary Articles at 113.7 (4.99% YoY), Fuel and Power at 113.0 (30.33% YoY), and Manufactured Products at 107.8 (7.48% YoY). The WPI Food Index (weight 24.99%) recorded 4.49% YoY inflation in May 2026 compared to 3.11% in April.

Key drivers of inflation across April and May 2026 include Mineral Oils (containing Petroleum Products), Crude Petroleum and Natural Gas, Manufacture of Chemicals and Chemical Products, and Manufacture of Basic Metals. The provisional estimate for May 2026 was compiled with a weighted response rate of 84.4%, while the final estimate for March 2026 had a 97.02% response rate.

Producer Price Indices Framework

The weights for Output PPI and trial Input PPI have been derived using the Supply Table and Use Table respectively of Supply & Use Table (SUT) of National Accounts for 2022-23. WPI, Output PPI and Service PPI are compiled based on Basic Price (excluding Net Tax and Trade & Transport Margin), while trial Input PPI uses Purchaser's Price. The Output PPI for All Commodities stood at 109.6 in May 2026, up from 108.6 in April 2026.

Release Schedule

Provisional indices of WPI, OPPI, and trial IPPI will be released on the 14th of the following month (or next working day). Service PPIs for seven services will be released quarterly with a 55-day lag. Specifically, WPI, Output PPI, and trial Input PPI for June 2026 will be released on July 14, 2026, while Service PPIs for Q1 FY2026-27 will be released on August 24, 2026.

Service PPI Performance

The provisional Service PPI estimates for Q4 FY2025-26 show: Securities Transaction Service Price Index at 91.7 (up from 89.2 in Q3), Banking Service Price Index at 100.9 (down from 102.2), Banking Service Contribution Index at 129.7 (down from 132.0), Management of Pension Funds Service Price Index at 103.8 (down from 106.3), Insurance Service Price Index at 102.8 (up from 102.0), Telecom Service Price Index unchanged at 112.2, Railway Service Price Index at 103.3 (up from 102.6), and Air (Passenger) Service Price Index at 106.9 (down from 107.3).

Comprehensive Data Availability

Back series of all new indices are available on the Office of Economic Adviser's web portal. The release includes detailed annexures with month-wise data for the past six months, annual data for FY2023-24 through FY2025-26, and comprehensive breakdowns by major groups and sub-groups for both WPI and PPI series.