India Unveils New WPI Series with 2022-23 Base Year, Introduces Producer Price Indices to Align with Global Standards

The Office of the Economic Adviser (OEA), under the Department for Promotion of Industry and Internal Trade (DPIIT), has launched a revised series of the Wholesale Price Index (WPI) with 2022-23 as the new base year, replacing the existing 2011-12 series. Alongside the revamped WPI, the government has also introduced the Output Producer Price Index (OPPI), Trial Input Producer Price Index (IPPI), and Service Producer Price Indices (Service PPIs) for seven major service sectors.

The move marks a significant modernization of India’s producer price measurement framework and aligns the country with international best practices recommended by the International Monetary Fund (IMF). The government plans to continue publishing both WPI and Producer Price Indices for the next five years, allowing users sufficient time to transition from WPI to the more comprehensive PPI framework.

The revised WPI basket has expanded substantially, with the number of commodities increasing from 697 to 957. Reflecting changes in the economy and energy landscape, renewable energy sources such as solar and wind power, along with nuclear electricity, have been included under the Electricity category. Crude petroleum and natural gas have also been shifted from the Primary Articles group to the Fuel and Power category, creating a more coherent structure for tracking energy prices.

Methodological improvements have also been introduced. The new WPI uses Gross Value of Output (GVO) for determining weights, replacing the earlier net traded value approach. According to the OEA, this better captures the domestic economic significance of commodities. The index now employs a short-term formulation method for elementary indices and adopts a “Targeted Mean Imputation” technique to handle missing price data, replacing the previous carry-forward method.

For May 2026, India’s wholesale inflation, measured by the new WPI, stood at 9.68 percent year-on-year, rising from 8.26 percent in April. The overall WPI index increased to 109.9 in May from 108.8 in April.

Among major groups, Fuel and Power recorded the highest inflation at 30.33 percent, followed by Manufactured Products at 7.48 percent and Primary Articles at 4.99 percent. Rising prices of mineral oils, crude petroleum and natural gas, chemicals, and basic metals emerged as the principal contributors to inflation during April and May 2026.

The WPI Food Index, which combines food articles and manufactured food products, recorded inflation of 4.49 percent in May compared with 3.11 percent in April, indicating increasing price pressures in the food segment.

Simultaneously, the newly launched Output Producer Price Index (OPPI) reported an all-commodities index value of 109.6 in May 2026, up from 108.6 in April. Agriculture, forestry and fishing recorded an index of 111.9, while manufactured products stood at 109.5. Mining and quarrying remained elevated at 122.3, reflecting continued strength in commodity-related sectors.

The Trial Input Producer Price Index (IPPI), currently being released on an experimental basis for the manufacturing sector, remained at 104.9 in May 2026. The initiative is intended to help policymakers assess data quality and gather stakeholder feedback before wider implementation. By capturing the prices manufacturers pay for inputs, the IPPI complements the OPPI and provides insights into how cost pressures are transmitted through production chains.

In a major step toward measuring service-sector inflation, the OEA has also released Service Producer Price Indices for seven services, including banking, securities transactions, insurance, pension fund management, railways, air passenger transport, and telecommunications. For the fourth quarter of FY 2025-26, telecom service prices remained stable at 112.2, while railway service prices rose to 103.3. Banking and pension fund management services recorded marginal declines, whereas insurance services registered a slight increase.

The government stated that future releases of WPI, OPPI, and Trial IPPI will take place on the 14th of every month, while Service PPIs will be published quarterly with a 55-day lag after the close of the reference quarter. The next release of WPI, OPPI, and Trial IPPI for June 2026 is scheduled for July 14, 2026, while Service PPIs for the first quarter of FY 2026-27 will be released on August 24, 2026.

With the introduction of these new indices, India has taken a significant step toward creating a more comprehensive and internationally comparable system for tracking producer prices across both goods and services sectors.