Wild Surge in Fuel and Power Sees WPI Cross Key Threshold as DPIIT Launches New 2022-23 Price Index Series

Wild Surge in Fuel and Power Sees WPI Cross Key Threshold as DPIIT Launches New 2022-23 Price Index Series​

The Office of Economic Adviser, DPIIT has announced the release of a completely revised series of Wholesale Price Index (WPI), transitioning to a new base year of 2022-23. This comprehensive overhaul replaces the previous WPI series based on 2011-12, aligning national price tracking with global best practices recommended by advanced economies and the IMF.

The release includes not only the revised WPI but also the introduction of several new Producer Price Indices (PPIs): Output PPI, Trial Input PPI, and Service PPI for seven key service sectors, all compiled against the 2022-23 base year. This shift signifies a move towards granular industrial tracking, providing users sufficient time to transition from traditional WPI metrics to specialized PPI data.

Key Changes in the New WPI Methodology (Base Year 2022-23)​

The new WPI series introduces significant methodological improvements aimed at enhancing accuracy and reflecting domestic economic realities. A major change involves switching the basis for calculating weights: the Gross Value of Output (GVO) is now used, replacing the Net Traded Value used in the older 2011-12 series. This ensures that commodity importance reflects domestic production rather than international trade flows.

Furthermore, the classification structure has been streamlined. Crude Petroleum and Natural Gas have been reorganized from 'Primary Articles' into the unified 'Fuel and Power' major group. The introduction of new energy sources—such as Solar and Wind power—under the Electricity Group highlights a focus on tracking India’s green energy transition within core price movements.

Inflationary Pressures: WPI Reflects Rising Energy Costs in May 2026​

The provisional estimates for the All India Wholesale Price Index (WPI) for May 2026 indicate persistent inflationary pressure across several key sectors. The overall All Commodities index stood at 109.9, showing a yearly-on-yearly (YoY) inflation rate of 9.68 per cent, accelerating from 8.26 per cent in April 2026.

The most dramatic shift is observed within the Fuel and Power major group. The index reached 113.0, a significant increase compared to 110.9 recorded in April 2026. This surge is largely attributable to Crude Petroleum & Natural Gas prices, which saw their respective index rise to 136.8. These trends confirm the heightened volatility and cost pressures within the energy sector as reflected by the new WPI structure.

Manufactured Products Index Holds Ground Amid Raw Material Scrutiny​

In contrast to the volatile energy segment, the Manufactured Products major group showed resilience in May 2026, standing at an index level of 107.8. This stability comes despite intense price movements observed in raw material inputs.

The Food Index, weighted significantly at 24.99 per cent, registered a YoY inflation rate of 4.49 per cent, up from 3.11 per cent in April 2026. Sector-wise contributions show that the Manufacturing of Textiles stood at 101.4 and Manufacture of Basic Metals rose to 104.1, contributing positively to the overall manufactured goods index.

Launch of Specialized Producer and Service Price Indices​

Beyond WPI, the release signals a broader effort by DPIIT to track the entire value chain through specialized indices. The Output Producer Price Index (OPPI) for all commodities stood at 109.6 in May 2026, indicating rising production costs across output industries. Meanwhile, the Trial Input Producer Price Index (IPPI), tracking inputs for manufacturing, recorded an index of 104.9 for May 2026.

Service sector indicators are also being tracked sequentially. Provisional Estimates of Service PPIs for Q4 of FY 2025-26 have been released across seven services, including Banking and Insurance. The Securities Transaction Service Price Index was noted at 91.7 in the provisional Q4 reading, while the Rail Passenger Service Price Index recorded 103.3 for the same period.

The detailed data is available on the Office of the Economic Adviser’s web portal, allowing stakeholders to compare the new WPI series with the specialized Output and Input PPI figures based on the 2022-23 economic framework.