 "Rlys, telecom among 10 services in govt's pilot inflation index out in June")
The government will come out with a Producers Price Index (PPI) next month for 10 services including telecom and railways on experimental basis, a government official said on Tuesday.
The move will help track inflation in these services, which will also include ports, postal, insurance, banking, transportation and air travel.
"Services PPI will be released next month," the official said.
Two major indices are used currently for tracking price movement — Wholesale Price Index (WPI) and Consumer Price Index (CPI).
While the WPI measures price movement of goods in wholesale markets, the CPI tracks inflation at retail level and also includes certain services.
While the incidence of taxes are accounted for in WPI and CPI, the PPI would reflect the cost at producers point sans taxes.
Also Read
PPI measures the average change in the price a producer receives for his goods/services sold in the domestic market/exports.
In case of railways, price movement would be tracked for freight tariff and passenger fares. On the other hand, the index of banking would include direct services and fees.
The PPI for services assumes significance the sector contributes about 60 per cent in the country's gross domestic product (GDP).
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)