NEWS – The government has constituted an 18-member panel chaired by NITI Aayog member Ramesh Chand to revise the base year of the Wholesale Price Index (WPI) and suggest a roadmap for transitioning to the Producer Price Index (PPI).

KEY MANDATES

• Revision of Base Year
  • Update the base year for WPI from 2011-12 to 2022-23.
• Proposed Changes
  • Develop a revised commodity basket for both WPI and PPI, reflecting structural economic changes.
  • Recommend the computational methodology for WPI and PPI.
• System Review
  • Assess the current system of price collection and propose improvements.
• Composition
  • Members include economists from the government, rating agencies, asset management firms, banks, and representatives from the RBI and government departments.
• Timeline
  • The panel must submit its report to the Office of the Economic Adviser, DPIT, within 18 months.

WHOLESALE PRICE INDEX (WPI) VS. PRODUCER