Explained: How India’s transition from WPI to PPI will strengthen inflation measurement – what it means for policy making
PPI captures the prices relevant for the production process without being complicated by inclusion of indirect taxes net of subsidies or wholesalers’ margins. (AI image) By DK Srivastava, Chief Policy Advisor, EY IndiaConventionally, in India, two major price indices namely Wholesale Price Index (WPI) and Consumer Price Index (CPI) have been prepared periodically. The WPI…


