The government is planning to revise the Wholesale Price Index (WPI) base year to 2022-23 and introduce the Producer Price Index (PPI) to modernize India’s inflation measurement system. This move aims to enhance the accuracy and relevance of economic indicators. DPIIT Principal Economic Adviser Praveen Mahto will address a media briefing on this development.
Saurabh Garg, MoSPI Secretary, mentioned that the current WPI base year of 2011-12 will be shifted to 2022-23 in the updated series. The transition to output PPI will not be immediate post-launch, as the government plans to assess its stability and reliability first. Garg highlighted that the difference between WPI and output PPI in India is expected to be minimal due to the consistent methodology used for WPI calculations.
The Ministry of Statistics and Programme Implementation (MoSPI) recently announced the use of updated WPI deflators with the new base year for compiling the Index of Industrial Production (IIP). This initiative aligns with the broader modernization efforts in India’s statistical system, including the revision of GDP and CPI base years. The government will continue using the existing WPI as a deflator until the updated version is available.
MoSPI is also looking to incorporate the Producer Price Index (PPI) soon, which tracks price changes of goods and services traded by producers. These steps signify a comprehensive revamp of India’s statistical framework, aiming to provide more accurate and relevant economic data to policymakers and analysts.
