The launch of the new WPI series marks a landmark reform in India’s efforts to modernise its inflation measurement framework. The Office of the Economic Adviser (OEA) under the Department for Promotion of Industry and Internal Trade (DPIIT) has introduced a revised Wholesale Price Index (WPI) with 2022-23 as the new base year, replacing the existing 2011-12 series. Alongside this, the government has launched the country’s first comprehensive Output Producer Price Index (OPPI), Trial Input Producer Price Index (IPPI) and Service Producer Price Indices (Service PPI) for select sectors, bringing India’s price monitoring system closer to global standards.

The initiative marks a major step towards aligning India’s statistical systems with global standards and gradually transitioning from WPI to Producer Price Indices (PPI), a methodology widely adopted by advanced economies.

The government said WPI will continue to be published for the next five years, considering its extensive use in price escalation clauses, procurement contracts and industrial agreements. This transition period will provide businesses and stakeholders sufficient time to shift towards the new PPI framework.

Comprehensive overhaul of the WPI framework

The revised WPI series introduces significant structural changes to better reflect the current economic landscape.

The total number of commodities covered has increased from 697 to 957 items, incorporating several emerging sectors. Renewable energy sources such as solar and wind power, along with nuclear electricity, have been included under the electricity category.

In another major change, crude petroleum and natural gas have been moved from the Primary Articles category to Fuel and Power, creating a more integrated approach to tracking energy prices.

The methodology for assigning weights has also been updated. Unlike the previous series, which used Net Traded Value, the new WPI is based on Gross Value of Output (GVO), offering a more accurate representation of domestic production activities.

DPIIT has also introduced improved data compilation techniques, including short-term index formulation and Targeted Mean Imputation to address missing price data.

WPI inflation rises sharply in May 2026

According to provisional estimates, India’s WPI inflation rose to 9.68% year-on-year in May 2026, up from 8.26% in April 2026.

The increase was primarily driven by fuel prices, with inflation across major categories recorded as:

• Primary Articles: 4.99%
• Fuel and Power: 30.33%
• Manufactured Products: 7.48%

The government identified mineral oils, crude petroleum and natural gas, chemicals and chemical products, and basic metals as the key contributors to inflation during April and May.

Meanwhile, the WPI Food Index rose to 4.49% in May, compared to 3.11% in April.

Textile and apparel sectors witness price pressures

The data also highlighted rising costs across India’s textile value chain.

Within manufactured products, textiles registered 10.22% year-on-year inflation, while wearing apparel recorded 4.28% inflation in May 2026. Leather and related products also saw inflation of 4.33%.

For India’s apparel industry, these trends indicate increasing production costs that could eventually influence sourcing decisions, pricing strategies and retail margins.

New Producer Price Indices to offer deeper industry insights

Unlike WPI, Producer Price Indices provide a more comprehensive understanding of inflation by tracking both input costs and output prices across industries.

The newly launched Output PPI measures price changes in goods produced by industries, while the Trial Input PPI tracks changes in the cost of inputs purchased by manufacturers.

For May 2026, the Trial Input PPI for the manufacturing sector stood at 104.9, reflecting cost pressures across multiple industries, including textiles, chemicals, rubber products and electrical equipment.

India introduces Service Producer Price Indices

In a first, DPIIT has also released Service Producer Price Indices for seven sectors:

• Banking
• Securities Transactions
• Insurance
• Pension Fund Management
• Railways
• Air Passenger Services
• Telecom

The quarterly indices are expected to strengthen inflation monitoring in India’s rapidly expanding services sector.

New release schedule

Under the revised framework:

• WPI, OPPI and Trial IPPI will be released every month on the 14th of the following month.
• Service PPIs will be published quarterly with a 55-day lag after the end of each quarter.

The next release covering June 2026 data is scheduled for 14 July 2026, while Service PPI data for the first quarter of FY2026-27 will be published on 24 August 2026.

The statistical overhaul represents a significant milestone in India’s economic data infrastructure. By gradually moving towards a Producer Price Index-based system, the government aims to provide industries, policymakers and investors with a more accurate picture of inflation dynamics, supply chain costs and pricing trends across the economy.