New model of Producer Price Index to capture input prices better on the anvil
- The Department of Promotion of Industry and Internal Trade (DPIIT) has finalized a new model of the Producer Price Index (PPI) and has shared it with the International Monetary Fund (IMF).
Highlights:
- This new model is to efficiently capture input prices in the economy
- In line with most G20 economies the government is slowly moving from the WPI to PPI.
- The government is also working towards changing the base year of the wholesale price index (WPI) from 2011-12
- The DPIIT in 2021 had issued a draft technical report of a working group, which had suggested revising the base year of WPI.
- Consultations regarding the same have been undertaken with the ministry of statistics and programme implementation (MoSPI)
Prelims Takeaway
- PPI
- WPI