Improved Producer Price Index model to better reflect input costs on the anvil
A working group's draft technical report, released by the DPIIT in 2021, recommended changing the WPI base year.
In order to effectively capture input prices in the economy, the Department of Promotion of Industry and Internal Trade (DPIIT) has finalized a new model of the Producer Price Index (PPI), which it has shared with the International Monetary Fund (IMF). This information was released on Friday by DPIIT secretary Rajesh Kumar Singh.
During a press conference, Singh stated that the government is also considering switching the wholesale pricing index's (WPI) base year from 2011–2012 to PPI in the future, in line with the majority of G20 economies. According to him, discussions over the matter have been held with the Ministry of Statistics and Program Implementation (MoSPI).
It must pass a procedure that involves the National Statistical Commission.
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