India launches 1st-ever Producer Price Index to track inflation
Business
India is rolling out its first-ever Producer Price Index (PPI) Tuesday, giving a fresh upgrade to how we track inflation.
Unlike the old Wholesale Price Index, the PPI will show what producers actually earn for both goods and services, including the massive services sector that makes up over half of India's economy.
India's PPI to clarify GDP figures
With the Ministry of Commerce and Industry leading the launch, India will finally be on par with countries like the US and UK in measuring inflation.
The PPI should help policymakers spot price changes earlier in the supply chain, making it easier to tell if rising costs are due to supply hiccups or demand spikes.
Experts say this move will also give clearer GDP data.