The Government of India plans to gradually phase out the Wholesale Price Index (WPI) over the next five years and introduce a more comprehensive Producer Price Index (PPI).
Unlike the WPI, the PPI will capture changes in output prices, input costs and service-sector prices, providing a broader and more accurate measure of inflationary trends in the economy. The transition is expected to improve economic analysis, policy formulation and inflation monitoring.
APSC Relevance: Inflation measurement, economic indicators and macroeconomic policy.
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