India’s Shift from WPI to PPI: A Major Reform in Measuring the Economy
The Wholesale Price Index has long been used to track price changes at the wholesale level. It mainly captures the movement of goods prices before they reach consumers. While this has served India for decades, the structure of the economy has changed significantly. Services now form a large part of national output, supply chains have become more complex, and policymakers need sharper tools to understand how price pressure moves across different stages of production.