**Executive Summary**
The Ministry of Commerce & Industry will release a revised Wholesale Price Index (WPI) series with a new base year of 2022-23 on June 15, 2026. The update introduces Producer Price Indices (PPIs) for output, input, and services to align Indian statistics with global best practices. Users of WPI for price escalation clauses are granted a five-year transition period before the WPI series is discontinued in favor of the PPI.
**Key Points / Main Content**
**New Indices and Expanded Coverage**
* **Introduction of PPIs:** Release of Output Producer Price Index (OPPI), Trial Input Producer Price Index (IPPI), and Service Producer Price Index (Service PPI).
* **Service PPI Sectors:** Initial coverage includes Banking, Securities Transaction, Insurance, Pension Funds, Railways, Air (Passenger), and Telecom.
* **Expanded Basket:** The number of items in the WPI has increased from 697 to 957.
* **Energy Inclusion:** Solar, Wind, and Nuclear electricity are now included in the basket.
**Methodological Improvements**
* **Weightage Derivation:** Weights are now based on Gross Value of Output (GVO) rather than Net Traded Value to better reflect domestic production significance.
* **Reorganization:** Crude Petroleum and Natural Gas have been moved from 'Primary Articles' to 'Fuel and Power' for better structural alignment.
* **Computational Changes:** Adoption of short-term chain-based formulation for elementary indices and "Targeted Mean Imputation" for missing price data.
* **Pricing Basis:** WPI, OPPI, and Service PPI are compiled using "Basic Price," while Input PPI uses "Purchaser’s Price" to reflect market costs for industries.
**Release Timeline and Data Availability**
* **Launch Date:** The new series will be released on June 15, 2026, at 12:00 noon.
* **Back Series:** A 37-month back series (April 2023 to April 2026) will be provided for WPI and OPPI.
* **Experimental Indices:** Trial Input PPI for the manufacturing sector will be published experimentally starting from March 2026 data.
* **Linking Factor:** A linking factor based on the financial year 2024-25 will be provided to facilitate the transition between the old (2011-12) and new series.
**Impact Analysis**
**Stakeholder: Commercial Entities and Contract Parties**
**Impact**
Entities that utilize WPI in price escalation clauses will be affected by the eventual discontinuation of the index.
**Action Required**
Must utilize the five-year parallel run period to transition their contractual price adjustment clauses from WPI to the new PPI.
**Stakeholder: Manufacturing Sector**
**Impact**
Manufacturers gain access to a "Trial Input PPI" and "Output PPI," providing a clearer understanding of how input cost inflation affects final output prices.
**Action Required**
Review experimental data and provide feedback to the Department of Economic Adviser regarding data quality and utility.
**Stakeholder: Service Providers (Banking, Telecom, Transport, etc.)**
**Impact**
Seven specific service sectors will now be formally tracked via the Service PPI, improving price transparency in these industries.
**Action Required**
Monitor quarterly Service PPI releases (starting with Q4 2025-26) for sector-specific inflation analysis and economic planning.
**Stakeholder: Economic Researchers and Policymakers**
**Impact**
The availability of granular input and output data provides a more accurate tool for analyzing inflationary pressures and domestic production significance.
**Action Required**
Incorporate the new 2022-23 base year data and the provided Linking Factor for longitudinal economic studies and policy formulation.
Key Entities Referenced
Wholesale Price Index (WPI): The primary price index being revised from base year 2011-12 to 2022-23, which is scheduled to be phased out after five years.
Producer Price Index (PPI): A new series of indices, including Output PPI, Input PPI, and Service PPI, introduced to replace the WPI in alignment with global best practices.
Office of Economic Adviser, DPIIT: The primary government office responsible for compiling and releasing the revised WPI series and the new PPI series.
Technical Advisory Committee (TAC) on Statistics of Price and Cost of Living (SPCL): The committee that reviewed and approved the recommended compilation methodology for the revised price indices.
National Statistical Commission (NSC): The high-level statistical body to which the methodology for the revised index series was presented.
Ministry of Commerce & Industry
Base Year of Wholesale Price Index Revised from
2011–12 to 2022–23
Revised Wholesale Price Index and New Producer Price
Indices Scheduled for Release on June 15
Revised WPI Series with Expanded Coverage, Renewable
Energy Inclusion and Improved Methodology to Strengthen
Price Measurement
Posted On: 02 JUN 2026 4:05PM by PIB Delhi
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. Earlier, the recommended compilation methodology was approved by the Technical Advisory
Committee (TAC) on Statistics of Price and Cost of Living (SPCL). Subsequently, the methodology was
also presented before the National Statistical Commission (NSC).
The Office of Economic Adviser, DPIIT will accordingly release the revised series of WPI with base year
2022-23 on 15.06.2026 at 12:00 noon, which would replace the existing series of WPI with base year
2011-12. In addition, the Office would also release new series of Output Producer Price Index (OPPI),
Trial Input Producer Price Index (IPPI), and Service Producer Price Index (Service PPI) of seven services,
viz., Banking, Securities Transaction, Insurance, Management of Pension Funds, Railways, Air
(Passenger), and Telecom with base year 2022-23.
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). Availability of both the Output PPI and Input PPI gives a better
understanding of the price movements of output items vis-s-vis inputs items being used in an industry. It
also explains how inflation experienced by producers on input items are passed through the output being
produced. The Service PPIs for seven services have been compiled in the first phase based on the of
availability of data from administrative sources/agencies. More services are planned to be added to the
basket of Service PPI in subsequent phase on the basis of availability of data.
The WPI and Output PPI are being compiled on monthly basis and will be available for the month of May
2026 (Provisional) alongwith the back series from April 2023 to April 2026 (37 months) on 15.06.2026.
The monthly Trial Input PPI (only for Manufacturing Sector) will be published on an experimental basisfrom March 2026 onwards. This would enable the Department to examine the data quality and also
receive feedback of stakeholders and users. Service PPI, compiled on quarterly basis, will be released for
the Q4 of 2025-26 (Provisional) along with the back series from Q1 of 2023-24 to Q3 of 2025-26.
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; and
(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.
The weights for Output PPI and Input PPI have been derived using the Supply Table and Use Table
respectively of Supply & Use Table of National Accounts for the year 2022-23.
WPI, Output PPI and Service PPI are being compiled on the basis of Basic Price (which excludes Net Tax
and Trade & Transport Margin), whereas Input PPI is being compiled using Purchaser’s Price since
industries purchase input from market.
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Abhishek Dayal/ Abhijith Narayanan/ Ishita Biswas
(Release ID: 2267963) Visitor Counter : 2857
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