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PPI to Replace WPI as GDP Deflator, Says MoSPI

30 July 20261 min read
ECONOMYPPI to Replace WPIas GDP Deflator,Says MoSPI30 July 2026safalsetu.com

Why in the news

The statistics ministry announced a change in how real GDP is worked out, using producer prices instead of wholesale prices.

Key facts

  • Shift: PPI takes over from WPI as the deflator in applicable cases.
  • Announced by: MoSPI.
  • Base year: 2022-23.
  • Method: double deflation.
  • From: April-June quarter of 2026-27.
AspectOldNew
DeflatorWPIPPI (where applicable)
Base year of revised series–2022-23
Method–Double deflation

Significance

  • The new approach sharpens the accuracy of real GDP estimates.

Exam angle

  • Ministry: Statistics and Programme Implementation.
  • Index replacing WPI as deflator: PPI.
  • Base year: 2022-23.

Test yourself

1. Which index will MoSPI use as the GDP deflator in place of WPI wherever applicable?

The Producer Price Index replaces WPI as the deflator.

2. What base year is adopted for the revised GDP series using the PPI deflator?

The revised series uses 2022-23 as base year.

3. The revised GDP methodology with PPI follows which deflation method?

The notes say it follows the double deflation method.

This topic is part of Daily Current Affairs 29 July 2026 (18 topics).

All topics of the dayDay quizJuly 2026

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