India introduces Producer Price Index alongside WPI to measure inflation
Business
India has introduced the Producer Price Index (PPI) alongside the existing Wholesale Price Index (WPI) to measure inflation more accurately.
Unlike WPI, the PPI leaves out trade margins and indirect taxes, so it gives a cleaner picture of how prices change right at the production level.
The update is based on fresh 2022-23 data and brings India closer to global standards for tracking inflation.
PPI splits into OPPI, IPPI, SPPI
The PPI breaks things down into three parts: output prices (OPPI), input costs (IPPI), and service sector prices (SPPI), covering everything from manufacturing to banking and telecom.
By focusing on how industries are connected and including services, the PPI offers a much fuller view of what's really driving price changes in today's economy.