# FinMin nudges ministries to switch to PPI for contracts 2026-08-16T07:49:38+00:00 | Governance | Indian Opinion Desk Corroboration: 1 independent outlet The finance ministry has asked all ministries and departments to use the Producer Price Index (PPI) instead of the Wholesale Price Index (WPI) for price escalation clauses in future government contracts. The Department of Expenditure issued a memorandum on July 13 urging the switch, citing PPI's greater international acceptance. The commerce ministry began publishing monthly PPI data for goods and services in June, aligning with International Monetary Fund recommendations. The move paves the way for phasing out WPI over five years. PPI better reflects price movements at the producer level. The output PPI for goods gives the highest weight to manufactured items (69.93%), followed by agriculture, forestry and fishing. Seven services are covered in the first phase, with more to follow. ## Coverage - thehindubusinessline.com This story was synthesised by AI from the source linked above. Tags: Commerce Ministry, Department of Expenditure, Finance Ministry, International Monetary Fund, Producer Price Index, Wholesale Price Index Canonical: https://indianopinion.org/finmin-nudges-ministries-to-switch-to-ppi-for-contracts/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/finmin-nudges-ministries-to-switch-to-ppi-for-contracts/#story-in-brief Review state: restored archive article, accurate at time of publication, not offered to search indexes. How this brief was made: an AI model read the report linked above and wrote this summary and analysis, which were published automatically. Published briefs are sampled every hour by an automated quality check; the editor verifies its findings and approves corrections, and corrected briefs carry a dated correction line. We do no original reporting. Methodology: https://indianopinion.org/ai-use-policy/