The government has decided to gradually phase out the Wholesale Price Index (WPI) and replace it with a comprehensive Producer Price Index (PPI) system. The decision was taken to modernise country’s inflation and pricing data framework and align it with global best practices.
The Commerce and Industry Ministry has said that the government has approved the revision of the base year of the Wholesale Price Index (WPI) from 2011-12 to 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.
The Ministry said that this will give sufficient time to users to switch from WPI to PPI. The revised Wholesale Price Index and New Producer Price Indices is scheduled to be released on 15th of this month. The Ministry added that the number of items covered under the new series of WPI has increased from 697 to 957, providing broader representation of economic activity.
Must Read
- Advertisement -
