Concept2 stories
Producer Price Index
In one line: A Producer Price Index measures prices received by producers; India began compiling a family of PPIs with base 2022-23.
The three kinds
- Output PPI: monthly, weighted by the supply table of the 2022-23 Supply and Use Tables.
- Trial Input PPI: for manufacturing only, published on an experimental basis, using purchasers' prices because industries buy inputs from the market. It rose from 104.2 in August to 106.1 in September 2026.
- Service PPIs: quarterly, for seven services: banking, securities transactions, insurance, pension fund management, railways, air passenger transport and telecom.
Why it matters
The WPI will be released for five years alongside the PPIs and then discontinued. This follows international practice and IMF recommendations, and for the first time gives India a price measure for services at the producer level.
Where to go next
- Wholesale Price Index
- Consumer Price Index
Producer Price Index in the news
- Wholesale inflation rises to 11.39% in September, led by fuel and power at 25.85% 15 October 2026
The indices that will replace the WPI after five years.
- Producer prices and double deflation: what changed in India's new GDP series 10 September 2026
The price index that makes double deflation possible.
Previous-year questions on this
- 2024 · GS3 · 10 marks What are the causes of persistent high food inflation in India? Comment on the effectiveness of the monetary policy of the RBI to control this type of inflation.
- 2022 · GS2 · 15 marks Besides the welfare schemes, India needs deft management of inflation and unemployment to serve the poor and the underprivileged sections of the society. Discuss.
- 2019 · GS3 · 10 marks Do you agree with the view that steady GDP growth and low inflation have left the Indian economy in good shape? Give reasons in support of your arguments.
- 2020 · Prelims Consider the following statements: 1. The weightage of food in Consumer Price Index (CPI) is higher than that in Wholesale Price Index (WPI). 2. The WPI does not capture changes in the prices of…