{"id":75767,"date":"2026-06-03T20:50:36","date_gmt":"2026-06-03T15:20:36","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=75767"},"modified":"2026-06-03T20:57:21","modified_gmt":"2026-06-03T15:27:21","slug":"wpi-base-year-revision","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/03-06-2026\/wpi-base-year-revision","title":{"rendered":"Base Year Revision of WPI and Introduction of PPIs"},"content":{"rendered":"\n<p><strong>Syllabus: GS3\/ Economy<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The Government of India has approved the revision of the base year of the <strong>Wholesale Price Index (WPI) <\/strong>from 2011\u201312 to<strong> 2022\u201323.<\/strong><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What is the Wholesale Price Index (WPI)?<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>WPI measures the <strong>average change in prices of goods<\/strong> at the <strong>wholesale or producer level<\/strong> before they reach consumers.<\/li>\n\n\n\n<li>It is compiled and released by the <strong>Office of Economic Adviser (OEA), Department for Promotion of Industry and Internal Trade (DPIIT).<\/strong><\/li>\n\n\n\n<li>WPI is widely used in;\n<ul class=\"wp-block-list\">\n<li>Price escalation clauses in contracts.<\/li>\n\n\n\n<li>Industrial and infrastructure projects.<\/li>\n\n\n\n<li>Economic analysis and policy formulation.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Major Changes in the Revised WPI<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Increased number of Items:<\/strong> The total number of items has increased from <strong>697 to 957.<\/strong><\/li>\n\n\n\n<li><strong>Inclusion of Renewable Energy:<\/strong> Solar power and wind energy have been included under the Electricity group.\n<ul class=\"wp-block-list\">\n<li><strong>Nuclear electricity<\/strong> has also been added to the basket.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Reorganization of Energy Categories:<\/strong> Crude petroleum and natural gas have been shifted from the &#8220;Primary Articles&#8221; category to the <strong>&#8220;Fuel and Power&#8221; category.<\/strong><\/li>\n\n\n\n<li><strong>Improved Methodology for Derivation of Weights:<\/strong> Gross Value of Output (GVO) has been used for preparing weights for WPI (2022-23) as compared to Net Traded Value i.e.<strong> GVO + Imports \u2013 Exports,<\/strong> used in <strong>WPI 2011-12 series.<\/strong>\n<ul class=\"wp-block-list\">\n<li>The weights based on GVO reflect the economic significance of commodities in a better way from the producer\u2019s perspective, as they represent domestic production.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Improved Method for Imputing Missing Price Data:<\/strong> \u2018<strong>Targeted Mean Imputation\u2019 <\/strong>method has been used, in place of \u2018Carry-forward\u2019 method being used in the existing series of WPI.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Introduction of Producer Price Indices (PPIs) in India<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The government would also release new series of<strong> Output Producer Price Index (OPPI), Trial Input Producer Price Index (IPPI), and Service Producer Price Index (Service PPI)<\/strong> of seven services, viz., Banking, Securities Transaction, Insurance, Management of Pension Funds, Railways, Air (Passenger), and Telecom with base year 2022-23.<\/li>\n\n\n\n<li><strong>Output Producer Price Index (OPPI):<\/strong> OPPI measures the average change over time in the prices that producers receive for the goods and services they sell.\n<ul class=\"wp-block-list\">\n<li>It captures price movements at the producer or factory gate level before taxes, trade margins, and transportation costs are added.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Input Producer Price Index (IPPI):<\/strong> IPPI measures the average change in prices paid by producers for inputs such as raw materials, intermediate goods, energy, and other inputs used in the production process.\n<ul class=\"wp-block-list\">\n<li>It reflects the cost pressures faced by producers.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Service Producer Price Index (Service PPI):<\/strong> Service PPI measures the average change over time in the prices received by service providers for the services they offer.\n<ul class=\"wp-block-list\">\n<li>It tracks inflation in the services sector from the producer&#8217;s perspective.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<p><strong>Source: <\/strong><a href=\"https:\/\/www.pib.gov.in\/PressReleasePage.aspx?PRID=2267963&amp;reg=3&amp;lang=1\" target=\"_blank\" rel=\"noopener\"><strong>PIB<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p><strong> Context <\/strong><\/p>\n<li class=\"ms-5\"> The Government of India has approved the revision of the base year of the Wholesale Price Index (WPI) from 2011\u201312 to 2022\u201323. <\/li>\n<p><\/p>\n<p><strong> What is the Wholesale Price Index (WPI)? <\/strong><\/p>\n<li class=\"ms-5\"> WPI measures the average change in prices of goods at the wholesale or producer level before they reach consumers. <\/li>\n<li class=\"ms-5\"> It is compiled and released by the Office of Economic Adviser (OEA), Department for Promotion of Industry and Internal Trade (DPIIT). <\/li>\n<p><a href=\" https:\/\/www.nextias.com\/ca\/current-affairs\/03-06-2026\/wpi-base-year-revision \" class=\"btn btn-primary btn-sm float-end\">Read More<\/a><\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-75767","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/75767","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=75767"}],"version-history":[{"count":2,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/75767\/revisions"}],"predecessor-version":[{"id":75770,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/75767\/revisions\/75770"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=75767"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=75767"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=75767"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}