New WPI series out on June 15, but to be replaced by Producer Price Index in 2031

📌 Summary:

• Commerce Ministry to release new Wholesale Price Index (WPI) series on June 15, 2026 with revised base year 2022-23 (replacing 2011-12)

• Release will include May 2026 data and a back-series from April 2023 onwards for comparability

• New WPI series is transitional — it will be discontinued in 2031, after which the Producer Price Index (PPI) based on output (producer-received) prices will become India's main non-retail inflation measure

• Why the switch: PPI measures prices received by producers, excludes net taxes and trade/transport margins, and is better aligned with international standards (used by US, EU, Japan)

• CPI remains the headline retail inflation measure used by RBI's MPC for setting policy rates under the inflation-targeting framework (4% ±2%)

• WPI continues to be used in price escalation clauses for govt contracts (raw materials, machinery, construction)

🎯 UPSC Relevance: GS3 — Indian Economy (price indices, inflation measurement, statistical reforms, alignment with global standards).

📝 Prelims Facts:

• WPI: tracks prices at wholesale level; released by Office of Economic Adviser, DPIIT, Ministry of Commerce & Industry
• CPI: released by NSO, Ministry of Statistics & Programme Implementation (MoSPI); used by RBI for inflation targeting
• PPI: output-based; excludes indirect taxes, trade and transport margins; common globally
• WPI base years over time: 1952-53, 1961-62, 1970-71, 1981-82, 1993-94, 2004-05, 2011-12, now 2022-23

🔑 Key Term: Producer Price Index (PPI) — measures the average change over time in the selling prices received by domestic producers for their output; preferred over WPI internationally because it captures producer-level inflation without distortions from indirect taxes or margins.