Final-demand producer prices rose 0.4% in August, with energy, diesel and transportation costs leading the increase.

The Producer Price Index climbed to a 5.4% annual rate in August, with a diesel price surge driving much of the pain. What's more concerning: earlier in the supply chain, prices are rising even faster — a signal that cost pressures aren't done working their way through the economy.

The PPI report today is making headlines across financial media, and for good reason. The Bureau of Labor Statistics has just released its Producer Price

The Producer Price Index climbed to a 5.4% annual rate in August, with a diesel price surge driving much of the pain. What's more concerning: earlier in the supply chain, prices are rising even faster — a signal that cost pressures aren't done working their way through the economy.

The headline number looks calm, but upstream prices for raw and intermediate goods are surging nearly 10% year-over-year — a signal that cost pressures haven't gone away, they're just moving through the system. Falling gas prices gave the monthly reading some cover, but the core trend remains elevated.

Key Highlights * MoSPI has swapped the Wholesale Price Index for the Output Producer Price Index as the country’s official GDP deflator. * The double‑deflation approach now treats output and input price changes separately to yield a truer measure of real GVA. * GDP’s reference year moves from 2011‑12 to 2022‑23, better reflecting contemporary production structures. * Implementation begins in the first quarter of FY 2026‑27, aligned with a revised back‑series data release. * Alongside, a pilot Index of Services Production (ISP) is launched to monitor the formal services economy. Detailed Insights Why PPI matters The Producer Price Index records the average price that manufacturers receive, capturing true production costs that WPI overlooks. With a more accurate deflator, real GDP estimates become less biased and more reliable for policy makers and investors. Double‑Deflation Method This technique applies the Output Producer Price Index to adjust output while using appropriate input price indices to adjust costs. The differential between inflation‑adjusted output and inflation‑adjusted input produces a cleaner estimate of real Gross Value Added. Base‑Year Shift Shifting the base year to 2022‑23 incorporates new consumption patterns, emerging industries, and structural changes that were absent in the older 2011‑12 benchmark. WPI’s New Role Although no longer the GDP deflator, WPI will continue to be published and may be used for other analytical purposes, while the Consumer Price Index retains its role for specific item‑level price monitoring. Implementation Timeline The new methodology is to be rolled out from April‑June (Q1) FY 2026‑27, with the back‑series GDP data updated to match the revised framework. Heightened Accuracy Comparisons of June 2026 inflation show PPI at 9.57% versus WPI at 9.87%, highlighting the larger over‑inflation inherent in the former index. ISP Pilot In July 2026, a trial Index of Services Production measured the formal services sector monthly, improving the high‑frequency picture of India’s economic activity. Strategic Significance This change is the most significant methodological shift in India’s GDP calculation in recent years, promising higher international comparability, better evidence‑based policy restraints, and sharper macro‑economic forecasting. Key Concepts * Producer Price Index (PPI)– a measure of the average price change received by producers for goods and services before reaching consumers. * Double‑Deflation Method– a technique that deflates output and input separately, enhancing real GVA measurement. * GDP Base Year– the reference year against which current prices and volumes are compared, now fixed at 2022‑23. * Index of Services Production (ISP)– a high‑frequency statistic tracking monthly formal services activity.

US wholesale inflation fell 0.3% in June on plunging energy prices, but renewed Iran hostilities and rising oil costs cloud the outlook for coming months.

India’s shift from WPI to PPI will sharpen inflation data, improve GDP deflation and align official statistics more closely with global norms. by Gaura Sen Gupta, BasisPointInsight.com

KUALA LUMPUR: Malaysia’s Producer Price Index (PPI) continued its downward trend when it decreased by 0.1 percent in October 2025, after a decrease of 0.8 percent in the previous month, according to the Department of Statistics Malaysia (DOSM). Chief Statistician Datuk Seri Mohd Uzir Mahidin said the manufacturing sector declined by 0.6 percent in October 2025 (September 2025: -2.1 percent), mainly due to a decline in the index of coke and refined petroleum products manufacturing (-5.1 percent) and computer, electronic and optical products manufacturing (-1.6 percent). “The Mining Sector also contracted by 1.0 percent (September 2025: 1.1 percent), due to […]

Namibia’s PPI declines despite mining growth NBC Online Thu, 08/28/2025 - 13:39

Overall Producer Price Index falls in second quarter 2025  Namibia Economist

US imposes additional 25% tariffs on Indian goods; SBI warns impact on US GDP and inflation, adding pressure on exporters and consumers.

New Delhi, Aug 15 (SocialNews.XYZ) The Centre announced that a nationwide survey will be done to update the country's Wholesale Price Index (WPI), introduce a Producer Price Index (PPI), and revise the Index of Industrial Production (IIP) to the 2022-23 base year. The move aims to make inflation and industrial output measures more representative of today’s manufacturing sector. The WPI tracks price changes of goods at the wholesale level, focussing on bulk transactions between businesses.