Economy Reports News Details

Revised Wholesale Price Index and New Producer Price Indices scheduled for release on June 15

(02-Jun-26   17:34)

Ministry of Commerce & Industry has stated that the revision of the Base Year of Wholesale Price Index (WPI) from 2011-12 to 2022-23 and compilation of Producer Price Indices (PPIs) has been approved by the competent authority in its meeting held on 25.05.2026. Considering the wide usage of WPI in price escalation clauses, this index will be released for five years from the date of release of the revised series along with PPI and will be discontinued thereafter. This would give sufficient time to users to switch from WPI to PPI. The transition from WPI to PPI is in alignment with the global best practices adopted by advanced economies and the recommendations of the International Monetary Fund (IMF).

Here are some of the key highlights of the new series of WPI (2022-23):

(a) Increased number of Items: The total number of items has increased from 697 to 957;

(b) Inclusion of New and Renewable Energy under Electricity: New sources of energy, such as Solar and Wind, have been added under ‘Electricity’ Group. In addition, Nuclear Electricity has been included in the basket;

(c) Coherent and Integrated Structure for Tracking Energy Prices: Crude Petroleum and Natural Gas has been shifted from the ‘Primary Articles’ to the ‘Fuel and Power. This reorganization would lead to better alignment, as this group already houses other major fuels such as coal, electricity, and petroleum products;

(d) Improved Methodology for Derivation of Weights: Gross Value of Output (GVO) has been used for preparing weights for WPI (2022-23) as compared to Net Traded Value i.e. GVO + Imports – Exports, used in WPI 2011-12 series since the weights based on GVO reflect the economic significance of commodities in a better way from the producer’s perspective, as they represent domestic production;

(e) Improved Computation Methodology: The elementary indices are being compiled using short-term formulation using chain-based method, in place of long-term formulation method (as practiced in the existing series;

(f) Improved Method for Imputing Missing Price Data: ‘Targeted Mean Imputation’ method has been used, in place of ‘Carry-forward’ method being used in the existing series of WPI.

(g) Linking Factor: The Linking Factor has been computed as ratio of geometric means of the twelve month indices of old and new series of WPI for the financial year 2024-25. This will be available for All Commodities and the Major Groups.

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