back to top
    BusinessGovernment Develops Advanced PPI Model to Help Track Surging Input Prices

    Government Develops Advanced PPI Model to Help Track Surging Input Prices


    The Department of Promotion of Industry and Internal Trade (DPIIT) has finalized an improved model for calculating the Producer Price Index (PPI) that aims to give a clearer picture of rising material and production costs according to top officials.

    DPIIT Secretary Rajesh Kumar Singh revealed that the new PPI model has been shared with the Monetary Fund after extensive consultations aimed at better capturing price movements across different industry sectors. The revamped index is expected to offer insights into inflation at the earliest stages of the supply chain.

    While the current Wholesale Price Index (WPI) continues to be the primary gauge of wholesale inflation, authorities recognize limitations in fully reflecting input cost burdens on manufacturers. Mr. Singh noted discussions are ongoing regarding a possible base year revision for the WPI as well as a longer-term shift towards the PPI which has replaced wholesale indexes in major global economies.

    Statistics authorities will evaluate the new PPI methodology before it can be implemented. But officials stressed the importance of modernizing economic indicators to maintain transparency around production expenditures contending with rising commodity prices and supply chain headwinds. The improved data transparency is aimed at facilitating well-informed policy decisions impacting industrial competitiveness.

    The Northlines is an independent source on the Web for news, facts and figures relating to Jammu, Kashmir and Ladakh and its neighbourhood.

    Share post:


    More like this

    Synapse Shutdown Leaves Millions Without Banking Access as $158 Million Remains Frozen

    The recent shutdown of banking-as-a-service provider Synapse has highlighted...

    China’s GDP growth moderates in Q2 as real estate downturn impacts consumer spending

    China's economy recorded a more modest growth in the...

    Wholesale prices in India increase 3.36% in June driven by costlier food

    Rising Costs Push Wholesale Inflation Higher For Fourth Month Wholesale...

    MTNL seeks Rs 1000 crore government funds to avoid debt default

    State-run telecom operator Mahanagar Telephone Nigam Limited (MTNL) has...