Revamping the WPI: A New Era for Price Index

The government has formed an 18-member working group to revise the Wholesale Price Index (WPI) base year from 2011-12 to 2022-23, led by NITI Aayog Member Ramesh Chand. The group aims to reflect economic changes, update the commodity basket, and transition to a Producer Price Index (PPI).

The government has taken a significant step by forming an 18-member working group aimed at revising the base year for the Wholesale Price Index (WPI) from 2011-12 to 2022-23. This initiative, spearheaded by NITI Aayog Member Ramesh Chand, seeks to provide a more accurate picture of the nation's price scenario.

According to the group's Terms of Reference, the focus will be on proposing a new commodity basket for both the WPI and the Producer Price Index (PPI) while considering recent economic changes. Moreover, the group is tasked with evaluating the current price collection system and suggesting methodological upgrades for more precise computations.

Comprised of representatives from key government departments and prominent economists, the group will also explore compiling methodologies for the PPI. This benefits not only wholesale markets but also aids in gauging retail inflation. A roadmap for transitioning from WPI to PPI is another major focus.

(With inputs from agencies.)