WPI inflation at 9.68% in May; India launches new 2022-23 base year series
Synopsis
India's wholesale inflation hit 9.68% in May — but the bigger story is the structural overhaul underneath the headline. The government has launched an entirely new WPI series with a 2022-23 base year, expanded the basket by 260 items, folded in renewables and nuclear power, and introduced three new producer price indices aligned with IMF standards. This is India's most significant producer price measurement reform in over a decade.
Key Takeaways
WPI inflation stood at 9.68 per cent year-on-year in May , with the all-commodities index at 109.9 .
Fuel and power inflation surged to approximately 30 per cent , the highest among major groups, led by mineral oils and crude petroleum.
The new WPI series uses 2022-23 as the base year, replacing the 2011-12 series, and expands the basket from 697 to 957 items .
New indices — OPPI , IPPI , and Service PPI for seven services — have been introduced alongside the revised WPI.
The old WPI series will run in parallel for five years to allow a smooth transition to the PPI framework, in line with IMF recommendations.
Renewable energy (solar, wind) and nuclear electricity are included in the new basket for the first time.
India's wholesale inflation rose to 9.68 per cent year-on-year in May, the Ministry of Commerce and Industry announced on Monday, 15 June, alongside the launch of a revamped Wholesale Price Index (WPI) series anchored to the 2022-23 base year. The new series replaces the decade-old 2011-12 baseline and represents the most comprehensive overhaul of India's producer price measurement framework in over a decade.
Key Inflation Readings for May
The all-India WPI for all commodities climbed to 109.9 in May. Among major commodity groups, fuel and power inflation surged to approximately 30 per cent — the sharpest rise across categories — driven primarily by mineral oils, crude petroleum, and natural gas. Manufactured products inflation came in at 7.48 per cent, while primary articles inflation accelerated to 4.99 per cent. The WPI Food Index recorded inflation of 4.49 per cent during the same period.
What the New WPI Series Changes
The revised basket now covers 957 items, up from 697 under the old series — a 37 per cent expansion in coverage. Notably, the new framework incorporates renewable energy sources including solar and wind power under the electricity category, and adds nuclear electricity to the basket for the first time. The government has also reorganised the energy basket by shifting crude petroleum and natural gas from the primary articles group to the fuel and power segment. The revised methodology adopts gross value of output (GVO) for deriving weights and introduces updated techniques for index compilation and treatment of missing price data.
New Producer Price Indices Introduced
Alongside the revised WPI, the ministry released three new price index series: the Output Producer Price Index (OPPI), the trial Input Producer Price Index (IPPI), and Service Producer Price Indices (PPI) covering seven services. In May, the new Output PPI for all commodities stood at 109.6, while the trial Input PPI for the manufacturing sector was recorded at 104.9.
Alignment with Global Standards
The ministry said the transition towards producer price indices is aligned with global best practices and recommendations of the International Monetary Fund (IMF). To ease the changeover, the existing WPI series will continue to be published for five years, giving data users and businesses adequate time to migrate to the new PPI framework. This comes amid a broader international shift away from wholesale price indices toward producer price indices, which are considered more precise measures of producer-level price pressures.
What Comes Next
The parallel release of WPI and PPI data over the next five years will allow analysts, policymakers, and businesses to calibrate their models against both series before a full transition. With fuel and power inflation running near 30 per cent, the data will likely inform Reserve Bank of India (RBI) deliberations on the broader inflationary environment, even as the central bank's primary mandate tracks retail inflation.
Point of View
But the structural story matters more: India is finally moving its producer price architecture closer to IMF norms, a reform that statisticians have advocated for years. The five-year parallel-run is prudent, but it also means policy users will face a decade of dual data — creating scope for selective citation. The near-30 per cent fuel and power print deserves attention: if sustained, it will feed into manufactured goods costs with a lag, and the RBI — focused on CPI — may find it harder to dismiss WPI signals as it has in recent cycles. The inclusion of renewables in the energy basket is overdue and will make future energy-price tracking more accurate as India's power mix shifts.
NationPress
10 Aug 2026
Frequently Asked Questions
What is India's WPI inflation rate for May 2025?
India's wholesale inflation rate for May stood at 9.68 per cent year-on-year, according to the Ministry of Commerce and Industry. The all-India WPI for all commodities rose to 109.9 during the month.
What is the new WPI base year and why was it changed?
The new WPI series uses 2022-23 as the base year, replacing the earlier 2011-12 series. The revision updates the commodity basket, incorporates modern energy sources, and aligns India's price measurement methodology with IMF global best practices.
Which sector recorded the highest inflation in May under WPI?
Fuel and power recorded the highest inflation at approximately 30 per cent in May, driven by mineral oils, crude petroleum, and natural gas. Manufactured products inflation was 7.48 per cent and primary articles inflation was 4.99 per cent.
What are the new producer price indices introduced alongside the revised WPI?
The government introduced the Output Producer Price Index (OPPI), the trial Input Producer Price Index (IPPI), and Service Producer Price Indices (PPI) for seven services. The Output PPI for all commodities stood at 109.6 in May, while the trial Input PPI for manufacturing was 104.9.
Will the old WPI series be discontinued immediately?
No. The existing WPI series will continue to be published for five years alongside the new series, giving data users and businesses adequate time to transition to the new PPI framework.
