Base Year of Wholesale Price Index Revised from 2011–12 to 2022–23
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📌 Summary:
- Office of Economic Adviser, DPIIT revised the Wholesale Price Index (WPI) base year from 2011-12 to 2022-23; release scheduled for 15 June 2026
- Alongside, new series of Output PPI, Trial Input PPI and Service PPI (for 7 services) will be launched with the same base year
- 7 services covered under Service PPI: Banking, Securities Transaction, Insurance, Pension Funds Management, Railways, Air (Passenger), Telecom
- Revised WPI will be released for 5 more years alongside PPI and then discontinued — aligning India with IMF recommendations and advanced-economy practice (PPI-based price tracking)
- Item basket expanded from 697 → 957; New & Renewable Energy (Solar, Wind, Nuclear electricity) added under 'Electricity'
- Crude Petroleum & Natural Gas shifted from 'Primary Articles' to 'Fuel & Power' for coherent energy-price tracking
- Methodology improvements: weights derived from Gross Value of Output (GVO) instead of Net Traded Value; chain-base short-term elementary index; Targeted Mean Imputation replaces Carry-forward method for missing prices
- WPI and Output PPI compiled monthly with back-series from April 2023 (37 months); Service PPI compiled quarterly; Linking Factor computed from FY 2024-25
- TAC on SPCL approved methodology; National Statistical Commission (NSC) vetted it; competent authority approved on 25 May 2026
🎯 UPSC Relevance: GS3 — Indian Economy — Inflation measurement, statistical infrastructure modernisation and India's transition to PPI-based price tracking in line with global IMF practice.
📝 Prelims Facts:
- Old WPI base year: 2011-12 → new base year: 2022-23
- WPI compiled by Office of Economic Adviser, DPIIT, Ministry of Commerce & Industry
- Number of WPI items: 697 → 957
- PPI compiled in 3 forms: Output PPI, Input PPI (trial), Service PPI
- Service PPI initial coverage: 7 services (Banking, Securities, Insurance, Pension Funds Mgmt, Railways, Air-Passenger, Telecom)
- WPI is currently used in GDP deflator and price-escalation clauses; CPI is RBI's monetary policy anchor
- TAC on SPCL = Technical Advisory Committee on Statistics of Price and Cost of Living
- NSC = National Statistical Commission
🔑 Key Term: Producer Price Index (PPI) — measures average change in prices received by domestic producers for their output (Output PPI) and paid for inputs (Input PPI); preferred globally over WPI as it uses Basic Price (excludes net tax and trade/transport margin) and captures price movements at the producer's gate.
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